My 22 Years Playing With A-Shares: A Speculator's Strategies

My 22 Years Playing With A-Shares: A Speculator's Strategies: "Speculative trading is just another type of investment opportunity. If there’ no opportunity, I won’t be speculating,” he said."

He’s always felt that a long-term share investing outlook in China, especially so-called “value investing,” is a high-risk, low-return strategy.

“Companies all have their own growth cycles and even longevity. No stock can forever rise, nor can it forever fall.

“Too many investors make the mistake of obsessing over beating the near-term moving average, and trying to hitch their wagon of fortunes to a particular counter or two.”

But Hua said loyalty to a specific listco was a foreign concept to a speculative trader like himself.

“Why should I be loyal to a company in my portfolio? What loyalty have they shown me?

“Holding onto a few ‘favorite’ stocks for a long time out of simple loyalty is a big mistake in my opinion. Instead, you should continuously and flexibly recycle your capital from one firm to another, always targeting those beginning a new up-cycle and dumping them as soon as the rise has run its course.”

Therefore, he said it was counterproductive to offer any insight into particular counters or sectors that brought him the best returns over the years as he was constantly jumping from share to share based on perceived uptrends.

Having endured the five bull/bear cycles in China since 1991, Hua said that he is more or less oblivious to the direction or level of the benchmark Shanghai Composite Index.

He’s always felt that a long-term share investing outlook in China, especially so-called “value investing,” is a high-risk, low-return strategy.

“Companies all have their own growth cycles and even longevity. No stock can forever rise, nor can it forever fall.

“Too many investors make the mistake of obsessing over beating the near-term moving average, and trying to hitch their wagon of fortunes to a particular counter or two.”

But Hua said loyalty to a specific listco was a foreign concept to a speculative trader like himself.

“Why should I be loyal to a company in my portfolio? What loyalty have they shown me?

“Holding onto a few ‘favorite’ stocks for a long time out of simple loyalty is a big mistake in my opinion. Instead, you should continuously and flexibly recycle your capital from one firm to another, always targeting those beginning a new up-cycle and dumping them as soon as the rise has run its course.”

Therefore, he said it was counterproductive to offer any insight into particular counters or sectors that brought him the best returns over the years as he was constantly jumping from share to share based on perceived uptrends.

Having endured the five bull/bear cycles in China since 1991, Hua said that he is more or less oblivious to the direction or level of the benchmark Shanghai Composite Index.

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