Did somebody queue to buy Straco at a wrong price this morning?
Yesterday closing was 0.595.
Today it open at 0.670 and 2 lots were traded.
I bought 1 lot at 0.580, queue to sell (Limit Order) yesterday at 0.600 and SCB managed to fill my order at 0.670 to match the opening price of today. I was shocked to see my order filled at 0.670, I thought probably it was some error. Phew, it wasnt.
The spread today is so wide, it drop back to a low of 0.615.
This is more of a speculative trade which I bought, thus only 1 lot. I will consider this a very fortunate trade. And I wouldn't dare to say I am proud winning this trade, it is really fluke.
I used to own this darling stock at 0.300 with quite a big allocation to it. Sold it quite long ago at 0.340, thought it will drop back because of the strong resistance and illiquid nature. I was wrong, it bust through the roof and rocket higher each week. It hurts to see the stock I have faith in the most to rise higher and higher each week. I could be sitting on few thousand dollar profit by now. But ohwell, money earned is better than money lost.
It taught me some very important lesson :
1. To trust my analysis and not my instinct that it will drop back.
2. Let my profit run, don't be too hurry on taking profit.
3. Be patient.
4. Don't let emotions take over you. I was too quick in wanting to cash out too; I was looking in terms of monetary value/profit and not how much the share is worth.
I will cherry pick this share if it ever drop back to a 0.500 or lower. I believe Straco is still a very strong fundamentally sound company with further room to grow. Hmm, probably? They are undergoing a bid for a new project which may be a further catalyst to it. As for their current tourism-related projects such as the underwater world and aquarium, recent and last few earning reports show dramatic rise in tourist inflow, thus the drastic increase in profit. But, one question is how much can they still grow?
To sum up
I hope I will be more wise in riding on my profits next time. Still, a very happy and lucky trade I gained today.
Cheers!
Little Boy
in another situation you would have rue that you should have sold it. its a bit outcome bias now that you should have held it.
ReplyDeleteperhaps the lesson learn is the process where you go through your buy and sell decisions and your behavorial control mechanicsms. this can still turn out to be a bad stock
Hi Kyith,
DeleteYup, its a little outcome bias though. Of cause I will curse and swear if the stock plunge, who wouldn't? I did my own due diligence, so I can only blame myself if it turns out the sour way.
Yeah, at least I made some learning process out of it and think back what went right/wrong. Nevertheless, it is a happy problem :)
Cheers!
Agree with kyith. The lesson learnt here is not that you should have held on to your winning stocks and not to sell off so early for profit. It's about clarifying your selling decision. Given long enough time in the market, you'll experience your fair share of stocks that are in the money, go up to a high, then come crashing below your buy price just because you didn't cash it out.
ReplyDeleteHi LP,
DeleteYeah, I have to agree to both you and Kyith. 2 wise man, with a common advice. I will work on my decision making :)
Thank you!
Cheers!
I am still holding to my 2 lots until the Dividend payout in early May (2 cents per share)
ReplyDeleteHi Richard,
DeleteI'm very happy to hear that you are holding this stock.
Their dividends are very appealing too. At current price of 0.615, an yield of 3.25%. Very yummy if you got it at a much lower price.
Cheers!