Our investing aim is to seek an unnatural net income in 3 hebdomads trading period with minimum hazard. to accomplish Top 3 National place.
In order to accomplish our investing aim. we created regulation of pollex as follows:
•Abnormal net income
In order to derive an unnatural net income. we seek a stock with high volatility. Before the competition started. we did a batch of brainstorming. non merely within us but within our university couples who besides joined this competition. Through that. we learn stocks from assorted pudding stones group perform better and more volatile than others. We sort our list from Bhakti Group. Bakrie Group. Lippo Group. besides Sinarmas. We besides learnt that a variegation doesn’t minimise any hazard. yet it reduces our chance to hold an extraordinary net income. So we decided we need to all-in one on stock. which we quitely certain it would upsurge on the trading period.
Stock choice is really important here. Besides it should supply high volatility. we should seek a stock with adequate liquidness for trading with size of 800 million Rupiah. We won’t take an overly liquidness one which means a trade off with the volatility itself ( such as bluechip stocks like Astra International or Indofood ) . We seek stock which is easy to play. hold a regular form to follows. The choice is limited on Indonesia market since: 1 ) we don’t familiar with another ASEAN market. and 2 ) Jakarta has performed better than any other on the list in recent old ages. Finally. we are right on that.
•Managing minimum hazard
As we mentioned before that variegation doesn’t minimise any hazard. yet it reduces our chance to hold an extraordinary net income. so we looks for manner to pull offing the hazard. We define hazard as non merely loss. but the existent return is below the expected return. is besides a hazard. We learnt that homo will be cautious and continue with good judgemental if we are on a life-or-death state of affairs. So we decided to take the same place ( of class with different amount of money ) . at our existent trading history.
Through this. we believe we can work really discipline following our trading program. We may besides put automatic cutloss point on our on-line trading platform. puting draging halt and automatically acquire presentment ( by SMS ) on our Mobile phone when its already executed on existent platform ; so we may continue to put to death it on CIMB platform in no much clip. By making this. we don’t need to set much emotion by watching the running trade. on which people normally do common misidentify ( sell good stocks excessively shortly or non execute cut loss on bad trade ) . But by mirroring our trade into existent one. it seems we have fewer chance to win with fortune merely. on which historically many victors on some competitions before have done it. We can’t put to death on a stock which its monetary value addition much without any related information. since it involves our existent money. and we do ( still ) love our money.
•Achieving Top 3
Our motion should procure our place at national top 3 ; by which we can travel to an aggressive motion to set our ranks. or we can travel into more secure ( but still offering good top ) stock to lock a certain sum of net income.
•Setting Stock Choice
As our investing scheme regulations that we need to take a possible stock with high volatility. we list and find assorted stocks as follows:
BHIT ( from Bhakti Group ) . FREN ( from Sinarmas ) . MLPL. MPPA. LPKR ( from Lippo Group ) . BUMI. ENRG. UNSP. ELTY ( from Bakrie Group ) . besides KIJA. AISA. and PNLF for a safe-haven stock ( which we don’t utilize it at the terminal because we don’t procure the 1st place ) . We learnt and chose these stocks. besides to minimise the consequence of uncertainness from planetary market. since the motion ( although we don’t calculate. we learnt by our experience ) . comparatively low-correlated with planetary market and local index. The motion largely comes from proficient and company intelligence.
The first motion is really of import. We watch the running trade for a few yearss at the start. and seeking intelligence everyplace. And we found 2 material intelligence. 1 coming from Bhakti Group and 1 coming from Lippo Group. From Bhakti. we found that Bhakti would do IATA for its substructure retention ( and we know substructure is a roar on Indonesia! ) . Unfortunately while we watch the running trade. we merely make up one’s mind that the volume isn’t adequate for us playing with 800 million ( we need about 20000 batch while the command offer merely non more than 1000 batch for every monetary value degree ) and historically it wouldn’t move above 80. so we decide non to take it ( and this is a bad determination since we know suspect that the 1st rank take this IATA with its liquidness hazard and unfavourable status. unless they have some insider information about the future monetary value! ) Then. we went to Lippo Group and the intelligence about some concern divestment on MPPA and capital decrease. We analyze that this corporate action will take a good net income for the parent. MLPL. So we decide to take place on MLPL at 20 Sept. ( intelligence released on 19 Sept after market near ) .
•Technical Analysis for Entry
Picture 4 MLPL Chart on that twenty-four hours
Chart is truly helpful for our determination to entry here. We wait the monetary value to interrupt fractal ( the last high ) at 154-155. We saw a good volume and monetary value interruption at 2nd session of that twenty-four hours. we decide to take place 9400 batch at market monetary value ( 155 ) . The order is done on a good consolidation motion after monetary value interruption. We sold it besides at that twenty-four hours since: 1 ) it touched the autoreject bound. we sell it near the bound ( on norm of 190 ) . 2 ) historically MLPL monetary value wouldn’t up on 2nd twenty-four hours as the forms showed us.
Yet. we did re-entry after a few yearss on short-run trade since the monetary value vibrating around 200 and holding good consolidation. Our mean approximately at 205 and we sold them 220 after we saw the fractal earlier at 225 didn’t interruption at the 1st session. We decide to minimise the hazard since we already secured the top 3 place.
•Entry and Exit mirroring on existent trade
As we mentioned earlier. our trading on CIMB platform besides mirrored on our existent history. so fortunately although we didn’t win the 1st award. we already reaped a few 1000000s from the trade on the competition period.
•Lock-in Net income and eyeing on others.
Our friends help us supervising on other squads motion through CIMB Malaysia apps on facebook. here: hypertext transfer protocol: //goo. gl/fxNm6. This determination is a lurid minute for us. since we found that the 1st victor already book about 100 % addition on the 2nd hebdomad. After that. we decided to lock-in net income by entered on a ‘cash-equivalent’ stock which offer us a safe place. We abandon the dream to be the 1st since we need to do another 70 % addition on 1 hebdomad to make it. and yet the 1st victor booked 194 % addition at the terminal. We abandon it because it merely would do our emotion involves if we forced to make a really aggressive trade. and once more it involves the existent money. We merely don’t want to be thrown out from the Top 3 for something unsure.
We decided to entry on BHIT ( Bhakti Investama ) at 495 on the Friday of the 2nd hebdomad. Bhakti Group has a good impulse since most of Bhakti stocks on uptrend term. and its character easy-to-follow. At the terminal of competition it closed at 510. It is truly a cash-equivalent 1. We put our cutloss on 485. since we knew the intelligence about Bhakti publishing new stocks on 490 we believe they would keep the monetary value above 490. And since this is merely a starting uptrend. we saw no benefit on seting automatic tracking halt. Yet. when we wrote this scheme today. the monetary value still up and near 560 today.
We may non offer you a really exceeding addition on 3 hebdomads. cause we don’t rely on fortune or coincidental to win this competition. But. we offer you a realistic scheme. uniting intelligence. proficient analysis. and our competency plus our trading experience. It’s a realistic scheme. because we got about the same consequence ( different commision fee made it non a absolutely same ) in a existent trading. We don’t know whether others dare to utilize their scheme in practical games on a existent money footing. We’re smart bargainer. non a gambler. Honestly. we feels good when we booked 32. 64 % net income in 3 hebdomads merely. since its equivalent of few 1000000s rupiahs existent money on our existent trade. We believe it’s a great accomplishment for us. This competition isn’t an terminal for our trading life. yet it has been an impulse and encouragement for us to better our trading scheme. Thankss CIMB for determining us better!