Badly Bruised Stocks - part II

Today I want to talk about these 2 counters in SGX:

Counter Name	CLOSE	HIGH	VOL	SMA20	DAYS AGO	Ratio to Peak	Symbol
CHINA ENERGY LIMITED	0.056	0.97	2043	0.0629	899	6%	A0G
CHINA SKY CHEM FIBRE CO., LTD.	0.089	1.56	3236	0.1036	898	6%	E90

Both of these counters are currently trading at about 6% of the Peak in 2007 (about 900 trading sessions ago). Both of these counters are S-Chip - China Company Listed in SGX. Imagine someone holding these two counters bought at that price. The kind of pain the investor suffer is understandable. This is a glaring example of not cutting losses. The old wisdom of letting profit run and cutting the losses short is never to be forgotten by any investor or trader. This is one of the most important lessons an investor should learn first.

If you cannot stick to this rule, you are unlikely to make much money unless you are a very lucky person. But now, is it worth to invest in these counters now? Since they are so cheap? In stock market, cheap can go cheaper. They can go trough share stocks consolidation to make it more feasible to trade.