Successful Trade

It's been a while since I posted. I'm still settling in my new job and setting up a new brokerage account due to work restrictions.

I just made my first successful trade since I started this blog, in DBE. Bought it the day following the news that CI Holdings were interested in acquiring a stake in DBE. It opened at 12 sen but I didn't bite, thinking that the 20++% rise the day before should attract some profit taking activities. I queued my buy order at 11 sen and got hit.

Set my stop loss at 8.5 sen (2.5 sen risk) and set my target profit around 13.5-14 sen. (2.5-3 sen reward).

Closed the trade at 13.5 sen today for a close to RM800+ profit or 4.5% gain in equity.

Although a lousy 1:1 reward to risk ratio, I just needed to trade to get my bearings back. So I consider this to be a B-grade trade.

New Trade

Made some trades today:

Long MMODE at 27 sen
Long PERDANA at 74 sen

The rationale the MMODE buy is stated here. PERDANA on the other hand is 100% speculative and based on rumour. Thought I'd pick up some shares as the stock showed weakness. Stop loss for each stock implies that the risk for each position is 1% of equity. Total risk: 2%.

Risk control is essential in times of uncertainty like this.