Rubber expected to move lower again today ... The Star yesterday written the reports by Am giving reasons WHY rubber-stocks retracing.

Speculator or Investor by S.Dali

I came across an interesting article on the same topic in the link below. I have spoken about the same topic during my talks. Its funny how we use those two words liberally without thinking too much about what they imply.

It would be the norm to categorise someone who does short term trading as a speculator and to put a long term player as an investor. However, the term speculator implies high risk, while an investor implies more knowledge based and careful ways in investing.

TEH : That was what I thought the differences between speculators and investors. But not many really understand the differences, actually.

What is the difference between a long term and short term investor. In Malaysia, a long term investor is someone who cannot get out profitably within the contra period ... "damn, guess I will just park it in my margin till it recovers".

TEH : Haha ... why I feel he is speaking about ... me? Haha.

Getting in and out quickly cause many to label them as risky but as recent history have shown, failure to cut your losses is the biggest risk you can have.

TEH : Agreed. I hv always fail to cut loss early, costing me an arm and a leg. Ouch!!

Wikipedia says that: Speculating is the assumption of risk in anticipation of gain but recognizing a higher than average possibility of loss. Benjamin Graham state that being an investor meant that: “An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.”
People get too caught up with the time horizon thing. You cannot be buying and holding a stock for two years and call yourself an investor. Time does not allow you to qualify as an investor. You can be a big speculator even when you hold the same stocks for years. When your mindset is plagued with "hope (that things will turn around)" or "pray (that somehow things will be better)" ... you are a speculator.

TEH : Then, I m a speculator ... hope my luck will be better this year!!

I can be an investor with a short time horizon as I may be buying on solid fundamental information and analysis, but I also go in only when other timing factors are in place (e.g. when I can sense catalysts that would rerate the stocks). Is that wrong when you buy and sell within a short period of time?

TEH : Buying Genting and selling Genting. I dont see it is wrong if I profit from the trades but if I get caught as it dives, then I turned into loooong term investor! See the magic?

The main difference in terming a person as a speculator or an investor is how many fundamental variables of the stock, the business model and the macro side do you have in your grasp when you decide to buy. The lesser of the variables you have when you decide to buy, the closer you are to being a speculator.

TEH : In a scale of 10, I m at 8, as a speculator. Not totally as I do know the businesses of the stocks I m purchasing. I wont touch ANY stock(even being recommended by some sifu, friends or remisier) if I know nothing much about the fundamental of the comapnies)

If you cannot even tell me what a company does or where the company is going strategically or how they are going to be able to maintain their growth and margins, you are speculating in the stock.

Trading in and out for 10% or 20% within a short period of time (say a few weeks) does not make one a speculator. Holding stocks that you don't even know what the heck they are doing for years would be speculating.

TEH : Argh-ha ... this is a relief for me. At least I sold many for 10-20% profits and knew a little of the fundamentals of the stocks that I speculated!! Weird, suddenly I feel that I m an investor! Or ... am I confusing myself again?

Above written by Dali and something I wanted to write for looongest of time but never be able to collect my thoughts. I will like to add my comments and views later.

Supermax-cb : Bought at 0.17 and 0.165 yesterday for 80k units, selling at 0.18 ... that is about RM900 profits for ONE day trading. Well, it is simulation ... showing my punt for yesterday(I think I written about it somewhere or perhaps I was just thinking of writing?). I m seeing Supermax-cb to be a good punting-trade. :-)

Transmile : It is diving. Watch for it. It is punters fav but need to monitor as it shoot up/down frequently, very fast pace.

Geely : At 3.70, down another 2%+. Now, I bought at 3.40 and sold all at 4.10 level. Then, it touched 4.25 before retracing till yesterday it DIVED to 3.80 level ... with FEARs around, selling pressure amounting and at 3.70 level today. I m looking to BUY again at 3.50 or RSI below 28. AM I SPECULATING or am I an INVESTOR? Hmm ... do u think I care what you said about me? Haha. Bottom-line ... lock-in profits and run, then wait for opportunities again. Mind you, I hold Geely for 2 months plus before selling. RANDOM? Then, I m lucky, honestly.

Qinfa :It goes the same for my Qinfa which I bought at 3.10 and hold for 3 months plus before released it at 3.60(as planned). It touched 3.65+ before retracing and dived to 3.20 level again(but I was greedy to wait for 3.00) ... today it is at 3.40 level. BUY? I wont.

CWP : Bought in stages at 0.70, 0.85 ... sold at 0.95. It dived yesterday to 0.85. I will look into it again at 0.70 level. I m clearly a SPECULATOR? If I claimed I like wind-powered stocks and CWP as a plyer, shouldnt I be buying and HOLD on to it? Afterall, I bought at 0.25 and finally sold at 1.03, right? WHY SELL? As investors, we should be buying and hold FOREVER? Hmm ... I think that is silly. Why bother how other see us?

Ok, ok ... I m a speculator. That wont change a thing of what I m planning to do or what I intend to learn. I m going for Chart-Nexus talk tonight ... and seriously thinking of learn the finer details of using TA for trading. Wait ... do u think I care if u said I m a FA or TA or what-ever-A? Hmm ... I dont. :P

WCT-wb : At 0.57, flying off today. It was at 0.48(I queued but didnt get it) ... today is a SELL for me. Err ... you mean you are an INVESTOR and you will hold till it reach RM1? Or forver till it expires and convert it to mommy WCT, and hold longer? Wait wait ... INVESTORS do not buy warrants as they dont give you dividends? Or err ... I m confused.

Same goes to:-

GPacket-wa : Bought 0.535, sold 0.60 level ... yesterday it went back to 0.535 but I did not look into it, today it jumps back to 0.57 level now. How to time the market when it is random? I feel it is not possible to ask anyone what

3.00 pm : Jaks cleared. Wow. Earned some dinners. hehe

Supermax is back to RM7 level, do look at Supermax-ca or Supermax-cb. I was 'happy' to sell Supermax-cb at 0.18, but it is at 0.19 now. Hmm ... many of times I sold too early.

5pm : KLCI at 1336 level. Adventa at 3.51. Hoping that it goes below 3.30 today to buy, but it rebounds. Rebounds another 2 days, I shall clear some of my holdings. Yes, I m clearing my stocks ... cheap sales?! Mega-sales? Sell before market dives? It wont? Hmm ... I m a looong term investor in TA, E&O, MAS and many more as I m 'stucked' with them!! Hey, MAS moving up, why AirAsia is landing? Will look into AirAsia when it moves to 1.25. Noted.

6.50 pm : I m at UOB Bangsar. Wow ... huge building here. Long time I never been to Jalan Maarof. It is like .... 10 years or so ago? The place here changed much! I m to attend a TA talk, hope I will be alert as I m tired, actually.

Here is the reason I m back to KL too ... to attend more of these talks, get to know few 'sifus' and let them guide me. I need to learn how to maximise my profits while trying to minimise my losses. Could learning TA helps? I believe so ... I do believe out there, there are someone profiting hugely using only TA. Whether TA = tak akal or not, we shall see later ...

EPMB : At 0.53 now, I sold it days ago at 0.545 levels. Will buy back at 0.505 level.

Efficient : At 0.205, I m thinking of clearing this one for small profits(bought 0.195). How? Why clear? As I m having the clearing sales mood ...

TEH