How to decide when to sell stocks?

KLCI closed at 1439 this week, 5% lower than earlier week. I have regretted that I did not sell GAMUDA at earlier week, it was at 28% profit but now down to 16%. You know! I have been telling myself to sell at 20% profit, so far this approach is not followed consistently. With Vietnam project worth RM10 billion and RM12 billion double tracking rail project, I thought GAMUDA share will go up further and I should sell at >30 profit..too bad, this week market selling pressure emerged with fear of US in recession.

What should I do now? sell or wait? What is the consistent way to make money from stock market?

For now, I will try to keep my approach to sell at 20% profit....don't be greedy. Also, I will close my monthly account with 5% ROI, if possible. Monthly closing account appeared to be effective as I must sell profitable shares on hand. It helps me to achieve 22% ROI in 2007.

KLCI breaches 1,500 points

The Edge Singapore quoted "While the US, Europe and Singapore markets still down from their highs of late 2007, you'd think that 1H08 is shaping up to be sobering phase. But guess which two markets are hitting new highs? Malaysia and India markets"

KLCI closed at 1,516 last week, up 37% over the past year. I think it is the result of the talk of election is just round the corner and the traditional pre-Chinese New Year rallies.

MRCB gained 19% to 3.04 and AnnJoo rose by 17% to 3.36 from my previous post. With high oil price, and likely recession in the US, I think it is still a volatile market, so fasten your seat belt and enjoy this short term rally.

Stock Watch List - January

High oil price, housing slump, credit crunch, and now to the end of the week, unemployment rate has hit a 2 year high of 5%. It looks like recession in US is in the card.

What should you expect? Volatility

Volatility is not all bad. It generates positive and negative returns. Its important to have a emotionless, well research approach and pick fundamentally healthy stocks. It is not easy job, you need to spend considerable time to read articles, company financial reports, analyst reports, news, magazines, etc.

My watch list for this month is;
1. MRCB (2.50, KLSE). Election is around the corner with expectation of new project awards.
2. AnnJoo Resource (2.88, KLSE). Anticipation of construction boom and expanding economy. 8.7 PE with Div Yield of 5.8%.
3. Starbuck (18.11, DOW). Share fell due to cost, consumer spending and increased competition from the likes of Mcdonald's and Dunkin Donut. Its 52 week range 18.00 - 36.61. Most probably, it will go down further but its brand still stick and trustworthy among consumers. Be patient and watch the stock closely for a turnaround.

Happy investing

The Pursuit of Happyness

I watched 2 movies "Evan Almighty" and "The Pursuit of Happyness" during Christmas & New Year Holiday. Both were excellence movies but I would like to mention The Pursuit of Happyness. When it comes to determination and persistence, this movie says it all! If you think you have terrible life and financial situation is really really bad, watch this movie! It will put thing in perspective.

The Pursuit of Happyness, is based on the astounding true story of a homeless, single father. Chris Gardner (Will Smith) is a single father who insists on raising his five-year-old son (Jaden Smith) while he struggles to make ends meet. Even when Chris found an intern position at stock brokerage firm, it pays no money. Forced to live in shelter, enduring hardship and difficulties as he goes through the program, Chris makes his dream came true.