Logic vs Emotion
Last Thursday and Friday I’m buying around 25k-ish of Indonesian stocks. The company its self is in a very good condition (financially speaking) with billions of rupiah in net income. The problem is, many sell-side analyst like Merrill Lynch and Morgan Stanley doesn’t like the stock very much (they downgrade it to hold or sell or even strong sell for some analyst).
From the technical point of view, the stock price is very depressed by selling sentiment and other technical indicators is showing that this stock can go down further. Even my heart tells me that I should get out of this stock instead of buying more (this very same feeling saved me from loosing money on BLTA — I bought it at 1960 and several hours later I sell it at 1940, now the price is under 1900).
But there’s something about this stock that I can’t pinpoint but I believe is a good choice. Not technical analysis for sure, not my feelings too (since I feel that I should not mess with this stock), probably fundamentals? We’ll see how things going tomorrow. 80% of my portfolio on this stock is for medium - long term (probably I’ll liquidate on March or June), let’s see how the other 20% going tomorrow. Will it go up, or will it go down?
[...] Several days ago I posted that I have an uneasy feeling when I entered a position of a stock. That feeling (or gut?) is proven correct. The stock that I purchased slid even further today after a week of steady (and abrupt if I may add) decline. To add to that, I’m trading on margin which makes the loss (and profit, if any) amplified several notch. I call it a day and won’t touch Indonesia stock exchange for this week. Let’s see how it goes next week as I will most probably (huh? What kind of grammar is that?) liquidate all of my position. [...]