The Responsible Trader

I was observing the local stock market last week and as the week ended I could not help but express my feeling that I have seen a similar stock price action before. Of course I am referring to Kepwealth Property Phils., Inc. (KPPI) which recently debuted as the first IPO for the year 2019.

Déjà Vu – CAL and KPPI

This is the Stock Chart of CAL.

Notice the price action during the first trading days. The Hype that time is that it is going to be the biggest supplier of agricultural products in the Philippines. It was even touted as the next Index Stock.

This is the Stock Chart of KPPI.

Notice the price action during the first trading days. The hype this time is that it is going to be the backdoor listing vehicle of Sogo Hotel.

Of course both ended up as Pump and Dump Schemes with the usual victims – clueless newbies who bought at the top expecting that the stock’s price would rise endlessly.

Spyfrat aka Hernan Segovia has a more kind term, he calls them “Ceiling Plays” and has developed the Parabolic High Risk System for trading this kind of set-up  which he shared in my first book, The Responsible Trader – a Thinking Person’s Guide for Trading the Philippine Stock Market.

I have already written several articles regarding this subject matter. For those who have not read it yet here are the links.

Victims of Hype – Part 1 – http://theresponsibletrader.com/voh-victims-of-hype-part-1/

Victims of Hype – Part 2 – http://theresponsibletrader.com/voh-victims-of-hype-part-2/

Victims of Hype – Part 3 – http://theresponsibletrader.com/victims-of-hype-part-3-from-victims-to-victors/

The “Road to Piso” Hype – http://theresponsibletrader.com/road-piso-hype/

 

An ounce of prevention is always better than a pound of cure.  Please allow me to reiterate. DON’T GET HYPED. LEARN TO ANALYZE. LEARN TO DISCERN.  IF IT SOUNDS TOO GOOD TO BE TRUE, YOU SHOULD KNOW WHAT TO DO.

Good luck on all your trades.