STI broke 2400! and My affair with Rotary

Today is a significant day - STI broke 2400: a feat attempted numerous times several months ago but failed till today! My immediate concern is whether the STI can hold above 2400 for next few days. If it does, man, glad i am, as the next focus will be to see if STI can continue the bull run to hit 2500 by Chinese New Year.

I was extremely disappointed with Rotary: announcing big deal and yet it sank. Not the first time and yet i repeated my mistakes time and again. My first stocks trade in life: ROTARY in 2003. I bought at 0.655 after they announced JV with Tiong Woon, Federal and Hiap Seng. Thats after run up from 18 cents or so. See how amatuerish and foolish i was - buy on news.. That day and next few weeks), Rotary crashed down to 35 cent, and i was still holding...... Long term investment you see, believing it will recover. Worse i average down. Sounds familiar? Anyway, it did, to 70 over cents to then suffer one big day crash to 45 cent again.. Man, i was still holding!! Enought is enough, so i sold it at big loss - taking it as tuition fees to the market.

But again, yesterday after the news announcement, i was so bullish on Rotary. Bought some to see it tanked after opening. $535 million contract and yes, it still dropped. Easy explanation, the news was leaked way before and most people bought in anticipation of the news. Once the news was out, TAKE PROFIT. This is what we called: SELL ON NEWS.

Well, fortunately, i did make some profits (bought some upon hearing the rumour). But that brings message to me: if you see extended run up for days to weeks prior to announcement: beware, AVOID BUY ON NEWS. The risk/reward ratio is simply not favourable enough. But, vice versa. If the stock is quiet before announcement, BUY on NEWS. SembKinstrans is a very good example.

Today, i sold my holding in Fung Choi. Earned 45% out of my invested capital and think need to lock the gain. This stock been sold down for few days and i think my capital is best parked on other potential counters. Look at Beauty China. I think it still has room for run up!!