WCT ENGINEERING Good Example. KL Composite Roller Coaster Ride ?

Wall Street plunged for a second day, the DJIA down -443.48 points yesterday. Major indexes have lost about 10 percent since Barack Obama was elected president. Today we have already saw that the share market open and down sharply before rebound from their lows to close near to their high. One thing we must remember that, we cannot expect that the market would behave like last two to three weeks where by the KL Composite Index continuously went down without any recovery.

Let us take a lesson from what has happen in last week and this week market. It would be a great lesson and a great reminder for us on how to trade towards our future share market movement.

As I mention yesterday, where will the KL Composite Index is heading to ? It would be a bonus question to answer. For me I would like to speculate that the KL Composite Index would likely behave like in a roller coaster move.

After their recent run up, it would take about 3 to 4 days for the market to adjust their high volume. I would still prefer to wait and see how the market will react in this few weeks. Remember we are still in a downtrend channel, nothing is positive at this moment.

WCT Engineering Berhad is performing quite well today. Today the counter went up RM +0.17 per share to close at RM 1.71 per share. WCT share prices even created new high today when it touches RM 1.79 per share. Higher than the previous two days trade. I still can remember how the share prices being sell down from as high as RM 2.50 per share and tumble all the way down to RM 1.07 per share.

This is one of the good examples that we need to share among us, whenever there is a sell down occur drastically, one thing we must always remember that no matter what are the prices that we brought (panic selling), we must be able to hold it steadier.

It seem to be easy to talk about it because we can base and see how much the prices for WCT today but when the time arrive (during a big sell off), we always blame ourselves when we have already brought the counter at a lower price but still the counter is facing a huge sell off. When the counter still keep on going down, we would start to think about minimize losses.

It shows that most of us are lack of holdings power. Some even try to cut loss and worried that the counter might go down further. It happen to me and it can happen to someone else. Eventually we will lose everything at the end of the day.