Last Week of April

Over all, this week is a quite good week. I did make a few mistakes, however, when I sold few stocks prematurely. It was a good gain, nonetheless, but I could have let it stay for more profit.

I misjudge a few things this weeks, and I suppose it's a good lesson to take.

DYL, I sold a quarter of my holding at 0.23. I thought it was a good price, as I bought them at 0.099. So it was like 150% profit, but then the share price went up to 0.31!

GIR, I sold out at 0.55 (bought them at 0.365), but the next day, it went up to 0.60.

PNA, I set my buying price at 0.29, but when it down to 0.29, I was a bit unsure and thinking that I could get it cheaper tommorrow. It never looked back since then, and now is sitting at 0.34.

MOL, same story as PNA

SDL, I had a chance to buy it on offer at 0.08, but did not take it. It went up to 0.11 on the next three days.

Lessons:

1. Cut the loss, but let the profit go as much as it could.
2. Stick with your trading plan, as nobody knows what's in store in the morrow.

Never Catch a Falling Knife

And never try to catch a rocket!

While the knives don't seem to fall badly this time around, the other challenge is to try to not too anxious and panic if you think you missed the boats, or rockets in this case.

The past few weeks, has witnesed some resource stocks prices soared. Copper price rebound, nice lead from overseas, etc.  They have caused a big jump in some resources stocks, but then the price eased again, to an oversold terrritory. Now if we bought in the high, as we scare of missing out, we will be in trouble. 

Tide is Turning?

Of all the shares I bought recently, only a couple of them that is currently below my purchase prices. Of course this doesn't count of my old holding, although it seems that they have also started to creep back up; baby step.

I am putting a buy order of 18000 pcs, still has not filled, on MOL.ASX (Moly Mines), a couple days ago. Moly Mines is a resource company that is focused on development of base metals projects including the world class Spinifex Ridge Molybdenum Project.

Biggest Mistake

In the latest Your Trading Edge magazine there is an interview with Dan Zanger, possibly one of the best traders in the last 10 years.  Dan is known to turn $10,000 into $ 42 million.

He was asked what are the biggest mistakes traders make ?

" Believing in a stock is number one. Never believe in a stock."