6.21.2017

A Tale of 2 Traders: SSI

This is a story of two traders who bought a stock. This story is completely true. The names have been changed to protect the identity of the buyers. 



Once upon a time there was a stock IPO. This certain trader, YP, loved the fundamentals of the stock. He thought the owners were reputable people and their name recall would carry their stock to the moon. YP knows Alpha is a technical trader, though has no idea that Alpha is ZFT trained. 

We begin our story sometime in back in July or August of 2015, YP would ask me from time to time what I thought of SSI. 


iAOTS with no sign of support

When it went back to the IPO price. I said, sell.

When it went to 6. I said SELL.

When it went to 5. I said SELL.

When it went to 4. I finally asked, why are you asking me for my advice if you're not going to listen? The chart is telling me there is no support or reason to buy yet. 



The only thing that he said was that he's already in too deep and would rather just become an investor. He still believes in the owners. That the owners won't let the stock be down for long. 

Fast forward to now, about a year and a half since that time. Finally, SSI looks to be showing some signs of strength. Slowly it seems to be on the long road to recovery. 


By my rough estimate, YP's average should be somewhere around 7-9 pesos. So from about a 60-80% loss, it should be now down to about 40-50%. Not bad. (Pardon my math, despite being a robot and a trader my math is very very bad)

As for me, I bought SSI using nothing but charts and was able to be up by a good amount. The road to breakeven for him is still ongoing. If ever it gets there for him, I'd like to believe that I'll be there cheering him on since I would have made another entry for SSI.



I hope that this story could be used as a sort of caution for people to stop loving a stock. Because it might be too late for some to realize that stocks won't love you back. 




7 comments:

  1. that last image gave me a good chuckle. :D

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  2. Bought SSI @ 2.44 - sold @ 3.15. Medyo naghihinayang, but gain is gain.

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  3. Zero Requiem6/21/17, 8:45 PM

    That AEP. 2nd breakout from the bottom :)

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    Replies
    1. yes. waited for the breakout after the conso.

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  4. commodities are basic goods that are exchangeable with other commodities of the same type. Traded commodities range from agricultural, livestock and energy to precious metals and industrial metals.

    ReplyDelete