Yongnam 002
I have been trading this counter for the past 2 weeks. Funny that despite the optimism, the price have been trending down like all other construction counters. How odd!
Since i am contra-ing, it’s pretty hard to hold for more than a few days. Resorted to refining my technique a little so i can hold out longer without putting any money in. But it’s going to wear me thin cos today if i dun make a sale, i have to buy in. And after which if it still goes down, here come the losses.
Since contra-ing functions on the basis of first-in-first-out, i have been trying to ‘average down’ in buying and selling. For example, YN bids @ 0.36 and asks @ 0.365, i place a sell @ the ask price and buy-in at the bid price way before the market opens so i can ahead in the queue. This way, i churn my older lots and renew my contra period with a little short-term profit. Of course, long term, it’s a loss if downtrending but this exercise mitigates some loss of sorts.
To add a margin of safety since i have lots of lots (dun mind the pun), i sell and buy in @ 1 and 2 bid levels above and below to capture cheaper prices and sell at higher prices. I wonder whether BBs do this to push down the prices as as a whole, this process eats into profits as commission goes to SGX. It’s worse than a zero-sum game.
I have reached my buy-limit. I hope that the forecast for tmr will be good as DOw futures points to a green field. And maybe the american holiday has taken all the BBs away so there’s nothing to push things up. It would be difficult to last beyond tmr so i hope to exit most of my lots asap.
