Angry Comments Sanitized

Today I received 3 angry comments from 3pmsupertrading (let call him 3pm in short). Two of them I have reproduced below while the last one was simply expletive that serves no value. In the two comments below, certain offensive words have been deleted. I have also deleted a naughty remark about another blogger which I regard as an unfair comment. The two comments are:

hi alex can u pls check how many times u bring ppls to Holland recently? with all your bullish calls ended up helping the stock manipulator unload to us. WCT, YTLland, Fitters, Dialog, Perisai, just to name a few for the very recent. all your (word deleted) start with xxx may have a bullish breakout!! then your cock and bull story. many die in your hand (pen) pls do some good and stop shouting bullish this bullish that.

stop pretending you are a stock Guru!! (word deleted) off!!! you are the best gift god send to the PLC boss, becos u help them to dump the (word deleted) to us. stop posting (word deleted), stop writing nonsense, (unnecessary comment about another blogger). (words deleted) MAY HAVE A BULLISH BREAKOUT!!!

Let look at these comments objectively, even though the commenter did not. I would readily admit that 3pm has a point that some of my calls are "helping the stock manipulator unload to us". He might also be right that I'm "the best gift god send to the PLC boss, becos u help them to dump the (word deleted) to us." You can see from the charts below that the stocks mentioned by 3pm have all faltered & those who bought at the breakout point are trapped. That's the sad part of trading which we have to live with. Not everything goes as planned!

Chart 1: Dialog's daily chart as at July 25, 2012 (Source: Quickcharts)

Chart 2: Fitters's daily chart as at July 25, 2012 (Source: Quickcharts)

Chart 3: Perisai's daily chart as at July 25, 2012 (Source: Quickcharts) 

 Chart 4: WCT's daily chart as at July 25, 2012 (Source: Quickcharts)

Chart 5: YTLLand's weekly chart as at July 25, 2012 (Source: Quickcharts) 

However, all stocks that enter into an uptrend, have to start somewhere. They have to start with a bullish breakout- just like 3pm started life as a baby, like the rest of us. How can you tell whether a breakout is a genuine breakout while others are simply the result of gaming by stock manipulators or PLC bosses. To be frank, I wish I can do that, just as much as we wish we can tell whether a person will turn into a cold-blooded killer- like the guy who massacred 12 innocent persons in a Batman premiere in Colorado recently. If we can do that, should we play God by locking him up. So, in the stock market, we can never be too sure. We may have to try out some bullish breakout cautiously- buying at breakout or on subsequent pullback or adding to our position as the share price inched higher- and at all time, exercise careful money management. 

There are many stocks that I wish I had called a buy earlier. Johotin when it broke above the horizontal line at RM0.95 & the psychological RM1.00 level. Deleum when it broke above the ascending triangle at RM1.15 (or RM1.70 before the recent capital exercise). I saw the breakouts but I did not make the call because I thought they might not sustain. There are some which I did and they had done reasonably well. You can find them if you look through this blog slowly. I will not trumpet them nor would I hide the calls that did not work out.

Chart 6: Johotin's weekly chart as at July 25, 2012 (Source: Quickcharts)  

Chart 7: Deleum's weekly chart as at July 25, 2012 (Source: Quickcharts) 

Our market has entered an exciting stage after the FBMKLCI made new all-time high. Technically speaking, this technical milestone is a bullish signal. And yet, we do not feel that way because the market breadth is rather poor. The market sentiment is weak in our local bourse as well as in other global equity markets. The global economy is uncertain, with slowdown in US and China as well as an unresolved crisis in Eurozone. Because of that, we have to be cautious. The stocks that I picked are those that I've regarded as reasonably good bet. While I could have been wrong, I prefer them to some riskier 2nd & 3rd liners that are the flavor of the week. Some players are like sheep being led to their slaughter. They would buy risky stocks based on nothing but tips. All they need to justify the soundness of the tip is volume and that the "manipulators or PLC bosses" are more than willing to provide. Their urge to gamble cannot be denied, putting paid to the old saying that "A Fool and his money will soon part".

Finally, I like to advise all the readers (including  3pm) that the reward in the market commensurate with the risk that you take. Those who buy for quick gain must necessarily take high risk. Those who took high risk when they bought in the market during the US financial crisis in 2008, reaped handsome reward. In the stock market, we must not only concentrate on the upside. We must always weigh the reward you hoped for against the risk that is embedded in every investment or trade. 3pm's comments provided me with the excuse to make this point. I like to thank him but I have a small advice for him. Next time, just post the comment without the expletives & naughty remark. For that, your comments will not be published. I do not like to treat my readers' comments as spams.