Shares & Derivatives
Cut Loss on CapitaLand and CapMallsAsia: Reflections and what’s next
By I  •  June 16, 2011
I cut loss on Capitaland and CapMallsAsia this week. Capitaland at 2.82, CMA at 1.53.

I am not disappointed with myself for losing money; what really irked me was my lack of a cut loss plan.

Trading with limited capital; you have to take losses quickly and enter trades only when risk reward ratio is good. (i.e., buying at support, cutting immediately when it's breached, having a reasonable profit target).

I learnt two important lessons from these two trades.

Start off with CMA.

CMA was a short term trade. I bought it,  hoping to make a quick profit in the short run.
Bought close to support, 1.71, and support was at 1.68 at that time. Didn't cut until all the way till CMA breached it's 52-week low.

My earlier (losing) trades on Wilmar and NOL this yr, I cut loss 10c off and 2c ......
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By I
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