Baidu.com (BIDU) has been a phenomenal holding and one of the strongest leaders among the Chinese stocks. I have watched, researched and jumped on this trend and will remain there until it ends.
New Oriental Education & Technology Group (EDU) has been one of the more consistent Chinese stocks with a great business model and a product in demand.
JA Solar Holdings, Co. (JASO) is fairly new to the blog and my research but has become an instant superstar with fabulous gains over the past three weeks. The stock is now up 51% and I have increased my trailing stop to guarantee a 40% gain (up from a 30% locked-in gain last week).
Mindray Medical International (MR) hasn’t been as successful as EDU but it is showing a 29% gain over the past five months. If I had to cut one Chinese stock from my portfolio, it would be this one as it is the slacker compared to the holdings above.
Be careful with these stocks but don’t ignore a hot trending market. Many thought the Chinese boom was killed months ago but don’t listen to these talking heads. Jump on the trend, ride it, lock in gains or cut losses if you are wrong. You can’t make money if you don’t play the game.
Don’t let your so-called “rational” mindset prevent you from buying a trending stock because it looks too high or seems to be near the end of a trend. Trade your system signals, not your emotions and turn off that TV set and stop reading crappy opinionated stock market blogs. Stick with reading the best blogs that present unbiased data (as unbiased as they can be); the ones that don’t pollute their pages with opinions and garbage beliefs. My blogroll contains some of the best blogs out there for new ideas and research.
You and I don’t know when that trend will end so play the risk-to-reward ratios and you will be fine. If another Chinese JASO comes along next week, I will buy, regardless of the length of the recent boom. Until the leaders fall, I am playing.
Finally, make sure you have hard physical stops (trailing stops) to capture these gains in case a quick pullback or correction does take place.
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