Investment - IOI Properties, (IOIPG, 5249) - Introspective Moment of Impulse Decision Making

Today I shouldn't get holding by the market trend and buy share blindly, aka follow my Impulse. This happened during IOI Properties (5249 ) IPO listing date where the price shoot up from listed price 2.51 -> 3.0 -> 3.2 -> 3.4 -> 3.6 within few minutes when the market open. 

I initially bid at RM2.86 but the pre-open market bidding make me feel that I'm too low for my price as majority of them bit > RM 3. The pace of the price increase went up after market open convinced me about that feeling and believe that the price will eventually push to higher price ( even to RM5) and hence during that time, my mind was only having the mind of " Buy ! Buy ! Buy !" before its too late. 


During that moment, NTA ( which 3.2 at the moment) , PE , DPS were totally out of my mind. I just don't want to lost the chance of being an early bird to buy the share. I decided to place my bet after the share slow down a little bit and by putting bit on 3.4, while it was 3.42 during that period. If I succeeded in purchase the share, perhaps I would be losing a more than 10% of my modal as the price goes down to 3 within 15 minutes. 



Why I didn't manage to purchase while the price is dropping? Lucky me there was an system wide error in Maybank online trading system, a Nationwide issue from Maybank system to the dealer system according to my phone call with Anis, the remisier / investment service Agent from Maybank. Due to this I was not able to purchase the share and I somehow suspect this is part of the reason it drop sharply as a lot of purchaser cannot place their order online. 

Anyway, due to this, I have the chance to slow down, get back my rational thinking rather than emotional attached to the trend. 

This really prove the advise from famous investor advisor "冷眼" ( Cold-Eye ):

"第一、是因为股市根本是不可预测的。第二、是股票投资赚钱根本不需要靠预测股市。股市有如黄鳝,浑身滑溜溜,你根本无法抓住它。一个曾经做过鱼贩的老同学告诉我抓黄鳝的"秘诀"。他说:"黄鳝吃软不吃硬,所以只能'托',不能用力'抓'。"不能用力捏,否则,它感到不舒服,就会挣扎,你无论多么用力,都会从你手中溜走。抓黄鳝,紧不如松,快不如慢,刚不如柔,巧不如拙。股市也一样,你盯得太紧,企图预测它的动向,它偏偏跟你作对。许多股友,千方百计,企图"捕捉"股市的起落,结果都徒劳无功,就好像用力抓黄鳝,始终抓不住一样。最好的方法,是远离股市,不太在意它的波动,把焦点集中在公司的业绩表现上,反而更易"驯服"股市。就好像轻轻托起,反而更能将黄鳝"制服"一样。股市的波动,就好像黄鳝的不断蠕动一样,是正常的,不必去理会它。采取反向策略,低价买进好股,就不动如山。只要公司业绩不断上升,就不卖。不要理会股市短期的波动,不必担心你的股票不会起,因为当公司赚钱越来越多时,股价必然会同步上升。
股市于我何有哉?"

"Get yourself away from the market, you will be clearer on which area you should be focusing"

The price went down from 3.4 to 3.02 in within 15 minutes and relatively stable until the time this review is written. Its also the time that I purchase the share with relatively reasonable price @ RM3.1. Albeit this is still relatively higher than my original price of <RM3. But looking at the potential future of this share and its relatively high NTA, lands on hand and reputation in the country. Its still a go for me. 

To improve myself and avoid same situation happen again, I will: 

  • Set a max go to price before the bid.
  • Avoid pre-open market as they are not for long term investor. Unless I have strong confident that this is the only chance.
  • Always put the basic in mind - NTA, DY, EPS and future growth of a company.
  • Keep a distance from the Market when needed. Do research than looking at the chart and price changes

Thanks to the system in saving my >10% lost, although its just a few hundred investment, but it teach me a lesson and pulled me back from the regret,allow me to review what really matters.

Thanks,
Cake



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