NeraTel: Trading around an investment.

Today, I divested some of my investment in NeraTel. Why? Do I not think that the share price could go higher?

Well, high could go higher. With the MACD and RSI still rising, the positive momentum is strong for price to possibly go higher. We also see a higher high in the CMF.

However, there seems to be an established pattern in the recent meteoric rise of NeraTel's share price. A high volume long white candle day seems to be followed by a short period of low volume pull back.

So, sell some close to the high and buy in again as price pulls back seems to be a good trading strategy. It also seems like a good idea for a long only investor to do this and make some pocket money in the process.

Fundamentally, my main motivation for investing in NeraTel is for a relatively high dividend yield. With its share price having run up so much in so short a time, dividend yield has compressed rapidly. At 84c, we are looking at a yield of 4.76%, far less than the 6.35% to 6.67% just a month or so ago.

With the uptrend intact, I will be looking to add to my long position if a retracement to support should happen. Where is immediate support? Possibly at 79.5c, give or take a bid.

Related post:
NeraTel: Is there no telling how high it could go?

恨人有, 笑人无.

We are human, we are flawed and money issues sometimes bring out the worst in us!

I read this in a rather candid article:

I have a tendency to use money as a scorekeeper in life. If I’m doing well financially, I’m beating all of those schmucks who have less than I do. And all of the people who are doing better than me got there because they cheated, got lucky, or otherwise fell into wealth.

The problem is the worst when I notice other people’s money making me mad. Here (is an example) of the sorts of relationships and encounters that stick in my craw:

• I have an acquaintance who is aloof, socially awkward and somewhat dimwitted. He also tends towards greed and arrogance to boot. But somehow, despite all of these serious faults, he has a knack for making big money. Against all odds, he is succeeding in his field. If current trends continue, he will end up far wealthier than me. And it burns me up.

Source: Your money, my problem.

I have always said that there is no need to compare. Why do people like to keep score and measure how successful a person is? The only person I should compare against is myself.

The Chinese have a saying:

恨人有, 笑人无.

Translation:
To loathe people who have wealth and to laugh at people who don't.

This is a behaviour we should all avoid.

Related posts:
1. Money making.
2. To be a happy peasant.