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. 

The only thing constant is change

So, after 2 weeks away from the market. It's time to go back to the charts. The first quarter of 2017 was extra special. I wonder what the rest of the year will bring. If it's even half as good of the first quarter then 2017 should be a banner year. Good thing that this time the market has my full attention. 

Just finished setting up Amibroker and I must say it's pretty awesome. Kinda late to the party since majority of traders in the tribe already use Ami. It was just that old reliable COL JAVA was working for me so didn't feel the need to switch. But since everybody knows that JAVA is being retired in all web browsers, change was inevitable.

Ami having shortcut keys and automatically saving my robotic drawings is a new thing for me. Makes me wonder why I didn't make the switch earlier. This should be fun.

What's not fun is $CHP. Reminds me of the slow death of $SSI in the last half of 2016. 

 $SSI circa 2016

$CHP, how low can you go? As of right now, nobody knows.

This is a sad reminder why I absolutely hate downtrending stocks. Still not sure why a lot of newbie traders our there in the Philippine market are so engrossed with looking for 52wk lows or all time lows thinking of it as a sale. Maybe there is a reason why it's trading that low? Whatever it is, I wouldn't want to touch them until the selling pressure has abated. 

Anyway, here's a video of one of my favorite books, Who moved my cheese? by Spencer Johnson. It simply states that in life we will encounter change in all shapes and forms. How we react to that change will determine our success. Enjoy!