DNDN Pick of the Day

DNDN Pick of the Day

kenttk, finally you are here

Before we begin with the stock to watch tonight, let evaluate our performance in the market. We have been repeating the same mistake, day in day out without analyzing our short coming and weaknesses for months if not years. Why are we ignoring the costly mistake that will siphon our reserves in the bank for our family and our future? I was also experiencing a similar dilemma back in year 1999. It is prudent for us think, plan, get one self organize and take action. We have to release ourselves form this uncomfortable situation, losing streak in the market.

We conducted brainstorming session in the work place with the employees to solve problem and get organized. Similarly, we also have to list down the details of our strengths and weaknesses to turn around from a “loser” to a “winner”. How can we achieve this?

We have to equip ourselves with (i) knowledge, (ii) trading tools, (iii) good machine, (iv) capital, and most crucial is to control our (v) emotion. If we do not have one of the four, it is the same like we are sitting on a chair with a three leg. Can we sit on the chair with three legs?

Let me share with you my experience when I was trading back in year 1999. I bought the stock based on finance yahoo message board recommendation, little knowledge in share market, without trading tools and my emotion outweighed the fundamentals and the results were disasters. Most of us are aware that 95% of traders and investors are losers. We must upgrade ourselves equipped of the above (i) to (v) and become one of the 5% winner camp. If we were to continue trading and missing one of the above 5, I am afraid we are going to lose money every month. May be we will win 2 or 3 out of 10 trades with little gains but lose big on another 7 trades. We have to invest, example subscribe to “real time chart” (is a must for a trader) that would help us to execute the buy and sell order, in order to be successful.

Emotion

We bring our emotion wherever we go, emotion relate to our personal character that will affect us in every decision that we make. We have to eliminate our negative emotion that is exist in our little voice to be independent and thus we are able see our blind spot and make a decision with a clear mind. Logically speaking, there are biases and prejudices in our little voice, we all have ones. “We have to remember negative emotion will outweigh fundamentals and logics.

My trading experience last night.

I was holding 4K shares of MGRM, and my target price to sell is $2.50. However, there was a negative comment of PFE made by Prudential and the high price for MGRM was $2.41, so, I sold my 4K shares with a small gains and the share prices of MGRM went down as low as 2.20 eventually. I do not allow my emotion to outweigh fundamentals, and I can buy back later at a lower price. The point here is that we must be realistic if we know that the target price is not within reach last night, we have to sell with a small gain.

Another case DNDN

I bought DNDN 300 shares at $16.70; the price went down to $16.39 after 15 minutes and was trading range from $16.40 to $16.60. After looking at fundamental, since yesterday was the first day reversal on the uptrend with huge volume, refer to attached chart, I did not sell in panic like most of traders in Wall Street did. The price closed $16.78 at the end of the day, after hour $17.05.

The above are the examples, how emotion can outweigh the fundamentals.

If we look at the chart of DNDN, the rally will usually last 3 to 4 days. But remember, DNDN is also another volatile trading pattern. I believe, there are many smart money, the Big Guys are watching and playing this stock. The result of DNDN products will be released by FDA on May 15.

I also bought 1K of MGRM.

ONT, have been accumulated by MM, range from 2.01 to 2.15, the support.
Next support 2.08 and 2.01.

ONSM, I don’t see any buying interest in the past 3 days.
Support 2.74 and 2.69, so I will buy again within this range.

Let’s practice what you have learned in order to be a successful person in everything you do.