An Investor's Take on Trading

Rather than stating about my thoughts, I decided to tell you my experience today.

Long story short, the night before this fateful day, I read that MFS Tech was going XD (after a capital reduction) the next day and I was tempted to buy into the stock when the market opens the next morning.

A short calculation shows that its value per share is about $0.005 per share. I was prepared to go in at $0.003 or $0.004 per share

The next day, when the market opens, this stock when down to $0.005 then up to $0.010. Then the rollar-coaster started.


At 0.028, I decided to enter into this rollar coaster ride. 

Here is what happened to my trades:


You must be very confused about what was going through my head when I was keying in my Trades... Am I crazy? There were cancellations of buy and sell orders... what really happen?

The main reason was I am unable to put in a price that I was able to justify.

During the whole rollar-coastor ride, I was trying to justify how a $0.005 company can be worth so much more.

As an investor, I am always able to justify my own views of a stock price via either its assets or earnings. 

But a company that is without business and only cash of $0.005 per share, I was unable to key in a price I was satisfied with. Thus, I kept cancelling my trades and keying in new trades.

It was really like buying 4D and hoping that my number is "hit".

I was also unable to understand what is "stop loss" even keyed in a wrong trade and sold accidentally.

Eventually, my 4 trades end up with a loss (that's not too big LUCKILY).

In short, I have to say I have done short term investing/trading before. But as I was able to justify the price I key in, even if the stock price goes down, I felt alright. However, I realise when I was unable to justify the stock prices I key in, I will panic and made rash decision. 

As one of my friend said to me - trading is just not my type of game.

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