Drown by the mighty river (Yangzijian)

Calvin: “bro, u bought Yangzijiang right?”

Me: “Yah, but sold off about 2 weeks ago. Make a little loss lah”

Calvin: “Wah you heng ah....me kenna man”

Me: “How many lot u buy?”

Calvin: “Me average down and now holding about 10 lot lah. Siong ha”

Me: “U WHAT!!? Wah lau u Jia lek lah, I though u go for preview and Keane say can not play average down, sure die one”

Calvin: “Kenasai, i though this one component stock can play mah. Bro u T3B expert, what to do now?”

Me: “It is still down trend. But I can't tell u what to do, wait suddenly it shoot up then u will blame me. What I can say is if it go down further than 2.2 u better give up and run”

Calvin: “Si bei siong leh, this time Oh Bak Kark liao”

Me: “Yah lah, people already tell you and you still don't listen”

Calvin: “Yah lah never kenna, never believe one. Eh...When is the next course?”


This is probably the fifth call that I've received this week asking for advise. Like what Keane said, if you don't have the good system you will learn from the rest and die like the rest. The big fish are there preying at you. And ironically many of these worldly wisdom will only make you fall deeper into their trap.

I bough Yangzijiang at $2.68 because my friend told me his broker's tip. It was also during that few day that the paper was blasting about china play. Added with one big securities house recomending a strong buy and set target price at $4.00. So I though it was a good play dispite T3B chart showing high risk. But one consolation is I told myself I would at least follow T3B's exit point.

Needless to say, less than a week it hit the exit point and I was forced out with some losses. Looking back now I would say it is a blessing in disguise. Today I am out and I can anytime buy it back at 20% discount. But do I want to go in now when it look so "CHEAP" now? Surely not, I am going to be smart and follow the rules. Until the entry signal show again, I will not make any move.

Looking at Calvin's strategy, his averaging down only give him the most 5% discount. And the worst thing is, he is now on huge paper loss and under tremendous stress. His stress will go further if the shares price goes further down. Looking at the chart it is a very likely situation.

Calvin..I pray for you.