My thoughts on China Fishery Group

China Fishery Group has turned into a smelly salted fish. The chart broke the critical support level of 85 and is now at a new 52 week low. I hate making sweeping statements but once again, it has proven to me that we should be very very wary of Chinese companies. Just to name a few, China GaoXian, Sino Forest, China Hongxing, Hongwei Technologies are just one too many. Not to mention my previous article on China Taishan too (the share price is now 0.044 cents versus 0.10 when i last blog it)!  

Be careful of companies that have excellent 'financial results' but are always in need of cash for business expansion. They will forever be raising cash via placement issues or worse still, via high yield bonds and most importantly, they never pay dividends. 

Let me just share a few lessons which I have learnt the hard way in the past. If you can master the 3 things below, it will bode you well in your pursuit for financial freedom.

1.  Never trade on tips or insider news. 

2. Always know when and where to cut your losses (before you even enter a position).

3. Know yourself and do your homework.

 Blogging on the 3 lessons above will probably take me another few hours, unfortunately, i have many meetings tomorrow. Just spend some time to ponder on what i said and when i am free, i will elaborate on them in more details. 

Good night.