My Review on Last Week’s PGAS Netting
Okay, my last week netting on PGAS doesn’t turn out quite well. In the end I lost quite alot of money (at least in my standard, I didn’t trade with a large sums of money). You can view why I entered the market last week on this post.
In this post, I’m going to show you what I’ve learned and why did I loose on that particular trade. Here’s my list:
- I concentrated too much on the three months period. The chart that I use was suitable for holding between 2 weeks till 3 months and I failed to see the small pictures of the stock. If you’re seeing the 5-day stock-chart at the time of my trade, you will see that based on technical analysis, PGAS is already on the sell side (damn it… I wish I could show you the chart, but I think I lost it somewhere and Yahoo Finance’s TA can’t display previous chart…)
- I concentrated too much on one stock and that stock only. The market (in this case Jakarta Composite Index) is on the correction trend and I stubbornly ignored that. Of course this doesn’t affect much if you hold it for the long term (say 3 months?), but it creates a lot of mess if you ignore the national market if you’re going to hold it only in days.
- I concentrated too much on the stock market and the regional market. When I entered the trade, Dow Jones can still struggle (+6) even when the market outlook indicator looked gloomy for the US, Nikkei also gain 150+ on their opening session (which usually is a good omen for Indonesia’s stock market). While the thing that I should’ve concentrate should’ve been the movement of Rupiah, that’s one of the main indicator of foreign sentiments on Indonesia’s market.
After further reviewing my winning and loosing trade (and also the capital gains and losses that brought with them), I discovered that I’m a better trader if I hold it on a longer term (say 2-3 months). The data clearly indicates that I’m not very good on using the market for swing or momentum trading and I performed better when I put the fundamental analysis in it (which means I hold longer, medium - long term).
I hope that this short review can serve you and me better in understanding and winning the market.
