A Trade on Gamuda

I bought Gamuda at RM1.88 which i noticed it was lying on its support line. When i bought Gamuda, stochastic was in oversold region and RSI almost in oversold region. I did not wait till MACD and RSI gave me the signal to buy since it was on its support line. Gamuda had been moving side way.

I was confident construction sector would benefit from our government stimulus plan. Besides, Gamuda was fundamentally strong.

I sold Gamuda on 13/2/2008 when it gained almost 10%.Although Gamuda did break above it 14D, 25D and 50D MA which was indicating a buy signal, I was concerned that Gamuda had reached it resistance level. So, i closed my position at RM2.07. I was satisfied with my gain.

It was emotionally hard for me to make the decision. As a normal human being, i was subjected to GREED and FEAR. Discipline is important in our trading success. So i followed my trading plan and sold at the resistance level (RM2.07).

Why do we need to have a trading plan, if we are not following the plan?!

I am glad I closed the position. The next trading day, Gamuda was down 5.5% or 11sen.