The Purpose of this Blog

Since some sort-of-related questions and comments have surfaced on the chatbox, I thought I would provide some background as to the purpose of this blog. It's probably easier to put down in point form, so here goes:

1. This blog is meant for traders, not "investors". Some people would label traders or speculators as punters, gamblers, etc. Whatever, it doesn't really matter to me. Even ICAP, which I have more than 70,000 units, haven't sold a single share and consider a long-term holding, I still don't term as an investment. Why? Because I have absolutely no say in how it's run. That's just the reality whether you choose to accept it or not. I am just buying based on its track record and "speculating" that it will continue to do well. The same applies to shares in all other companies traded on Bursa or other exchanges. Unless I have a say in how it's run (as a substantial shareholder or a member of the Board/Management), I am just speculating that it will continue to perform, or turnaround or whatever, based on either past record or perception of industry trends and that it's share price will appreciate to give me a good profit.

2. This blog is meant for discussion of trading ideas, themes, etc. as well as specific trades. I draw ideas, opinions, tips and whatnot from many sources and decide which look likely to reward and which look like traps. If I like an idea, opinion or tip after mulling over it, I make the trade and post it here. If a trade doesn't work out or I feel has run its course, I sell and post it here. Anyone is welcome to comment on each and every trade. For instance, when Felicity2323 asked why I sold some LIONDIV although it was still in an uptrend. That was a timely and useful reminder to sometimes ride out winning positions to their maximum potential (although I was just following my strategy to take profits periodically).

3. Following from the above, this blog is not meant to RECOMMEND shares to be bought or sold. I am just showing trades which I have made, which may have arisen from one of the reports, opinions, ideas or tips I have considered and which I believe have a good chance of being profitable. I firmly do not want to influence other's judgments by making Buy/Sell recommendations. I also am definitely not qualified to do so. If asked specifically, I may give some thematic or high-level reasons why I am bullish or bearish on a certain stock, but that's about it. For those looking for solid fundamental investments and the detailed reasoning behind each and every Buy/Sell decision, go to Investssmart's blog. He is first on my list of links and is definitely one of the best in this approach. I can trade up to 50 stocks at one go and definitely don't have the time and the passion to write out a detailed explanation and subsequent follow-ups on every single stock I trade.

4. This blog is not meant to keep track of, or demonstrate how much total profits I have made or can make, or percentage returns. What I (or anyone else) make overall belongs to me and should be entirely irrelevant to someone else. The saying goes "the one does not apply to the other", or something like that. We all have different capital bases, different liquidity profiles, different financial commitments, etc. so it is pointless to make comparisons. We should just focus on discussing specific trades and ideas.

5. "Win" mentioned that people don't know whether my record is successful and that there's just no way to keep track of my trades. Again, I say my overall record is unimportant, let's keep it to specific trades. Each time I report a Buy or Sell, the Qty, Price and balance held are there. You can comment on it, follow it, criticize it, keep it in mind or just plain ignore it. If you want to refer back or check all my Buys/Sells on a certain stock, just type in the stock short code in the Search Box at the top left corner and click "Search this Blog". All the Buy and/or Sell prices will be there for you to see. I don't adjust my cost or returns for dividends received though, so my returns may actually be higher than what you see, but definitely never lower. Note: I just realised while typing this that for stock splits, the previously reported Buy price would be significantly off (higher), so I will start including average split-adjusted cost prices when I sell stocks that have undergone splits.

6. This blog is not meant for casual visitors, as Win mentioned. Why? Because I trade frequently and try to report trades by day-end (sometimes even intra-day through mid-morning or mid-day reports). If you decide to follow one of my buys and only come here again 2 weeks later, you may discover I'd already sold it the day after. Unless, you've decided to make your own timing decisions on when to buy or sell a stock reported, don't rely on this blog if you're an occassional visitor.

Well, hope that clears the air a bit. Having said all that, I cannot say that my method of trading is correct. Tomorrow, everything may just blow up in my face (and I thank all the well-meaning people who have been warning me). All I can say is that this method works for me and suits me fine for now. You can decide for yourself what suits you. Sorry if I have inadvertently offended anyone .

Happy trading to all.


/ichithekiller