Sunday, June 21, 2009

Should I get out of Yangzijiang?

Let's do the sums, now that a market reversal is imminent:

Case 1: Stay with Yangzijiang

Wait for recovery, but seriously, the next few years are bleak. Furthermore, Yangzijiang is no longer an STI stock. Sticking to one stock is also a very dangerous thing. Furthermore, look at the many S-chips which has since tanked. This may be the next.....

Case 2: Sell Yangzijiang now and invest in STI ETF later

This would mean an immediate realised loss of $15,000+. Also, what if the stock market pushed higher? I would have missed out on the opportunity to sell it at a higher price.

Case 3: Ride the uptrend now, but prepare to bail once Yangzijiang displays misbehaviour

Best solution is to just set a target price in which I must get out (0.70). Once done, grief over the loss for a few days, learn from it, and invest wisely the next time. The most practical way, but also very painful. But the best revenge is if I could make all the money back in my next few trades. And I promise I will.

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