Today I will start invest again. I choosed to invest half of the my last month income.

But I like do it the fun way, to have good feel from it. I need to feel good, because if I feel good, I’m making more money in my business… And more money is good .

What I did?

I analyzed Czech Republic stock market and choosed stocks according to this criterions:

1) Company must be from the Czech Republic (pure SPAD stock, no UNIVIC)

Pure SPAD stocks:

ČEZ a.s.

Unipetrol a.s.

Telefonica O2 CR

Komerční Banka a.s.

Philip Morris ČR a.s.

+ one my "wild horse" PEGAS NONWOVENS SA

2) Put out company, which I don’t like as the human:

Philip Morris ČR a.s. – cigarettes

Komerční Banka a.s. – bank. I don’t trust any bank, every bank leverage is +- 50:1, this is crazy…

3) I putted out stocks from the market, which I don’t understand

Unipetrol a.s. – coal company. I don’t understand precisely price relationships between oil and coal. Oil price are determined each day on the commodity stock exchange mainly in USA. I don’t monitoring it, don’t understand it right now, so I will don’t invest to this company…

4) I did technical analysis (Moving Average) and fundamental analysis (P/E, annual turnover)

ČEZ a.s. – good P/E, good dividends, strong uptrend

Telefonica O2 CR – good P/E, excellent dividends, strong uptrend

PEGAS NONWOVENS SA – excellent P/E, very strong uptrend (probably small downtrend correction)

5) And what is the funny part? Dice choosed the right stock .

This Is random part, which will choose randomly (today and in my next regular investments) to which excellent stocks I will invest. Chance is fun. I may choosed, that I will invest to the first company first month, second second… but this isn’t fun and isn’t good, because I will do steps 1-4 each month again, and next month i may have 2 companies, and other month, I may have 5 companies… So I choosed, that random choice will be the best one…

I sorted stock according to the annual turnover.

1- ČEZ a.s.

2 – Telefonica O2 CR

3 – PEGAS NONWOVENS SA

4 – 6 I will repeat throw

How it end ?

Dice choosed 2. I will invest today after 75 minutes to O2 .

My experiences from the Czech Republic RMS market Is, that price depend only on the SPAD market. Price is usually 0.5% up or down SPAD (if SPAD go up, it’s up the SPAD price…). It’s good for selling, when the market going up, because you may sell it with higher profit, but if you will miss the turn-over point you will claim high punch .

Liquidity is good, but problem is, that you don’t know If you will sell or not, it’s the auction. I’m someone trying sell for 100, not sell cancel it and go down to 99.8, 99.5…, and still not sell. In the SPAD market the brokers which creating market must buy from you!

Problem is too, that if you not trading with BAACEZ (ČEZ), which is the top one stock on the Czech market, and you trading with BAATELEC (O2) or BAAUNIPE (UNIPETROL) the market is slow and someone selling only, for example, once per 30 minutes . So you looking on graph, which not changing, and you don’t know where the price is right now…

Graph (FIO broker) is from big SPAD (EU – Czech Republic) market. My orders was placed on the small RMS market, where the price fluctuate heavy +-5 CZK around SPAD . At RMS I usually buy better than on the SPAD market, but I must sell quicker, when the price go up at the SPAD. If the price start falling down at the SPAD the RMS accepting only very low price .

Buy:

Firstly I draw red line under minimums and green line at the expected profit .

The minimum for 24. 9. 2008 was from  596 to +-597, the price go down to 593, i place order and bought at 591,3 .

(click to enlarge)

Sell:

Now I must little wait and look market very carefully, if it will go down i will sell! This is the most difficult part !!! I must be strong, and if market not return to usual limits, it’s regular breakout and price will FALL DOWN HEAVY!

Market go up for whole day, with large correction in 15-16 hours (as everyday…, everyone ending in this hour his positions).

Today 25. 9. 2008 I watch the USA market (USA storing lot of money in the CR market…), which fall down to -0.27% (NASDAQ 0%), so i can’t expect any large push up in price! At the 11 hours I meet my internal goal of +-400 (410 wasn’t realistic according to the USA results), so i placed sell order at the nice 399,7 and wait. If someone will buy it, or the price will go up (if go up, i will cancel the order and wait). Someone buy my stocks at the 401 and i realized nice profit .

(click to enlarge)

So this is way, how I’m today make some money

This stock exchange crash isn’t for me . Try make some money, when the whole market crashing and your brokers RT fee is 0.802 % with spread around other 1%.

Today i sell my 1082 BAACEZ position for only 1020 (and i tried sell it for 1050-1030 CZK).

I will focus on adult . I can’t make any money, in long position, on falling market, when every profit consume broker, and when i’m waiting little more my money is out.

I’m totally pissed now.

This is screenshot of last 10 days of BAACEZ stock. It looking, that down-trend is gone and new up-trend gaining strength (green line). Market opening after 3 hours at 9:10 am. I will buy CEZ and this will be my first buy planed only on trend-lines . Will it be successful or not? I will see .

(click to enlarge) Graph provided by fio.cz broker (I cut out the 16-17 hours).

Buying:

9:00 RMS was opened, I send instruction to buy one lot (50) at 1050 CZK (under-priced), no one sell me this

9:0x SPAD opening, the big buyer take up the price to 1067!!! Wow, BAACEZ is hot today!

9:15 (5 mins after the KOBOS opened) I bought 54 stocks at 1084 CZK at KOBOS market (RMS was on crazy 1090 CZK)

Now is time to watch carefully my position and exit (sure based on trendline) in the right moment.