Remember to Check for Stock Issues when Trading Stocks!

I have made a very basic mistake. I bought a stock without considering its CB (cum Bonus) issue! I am only aware of it when I checked the stock price on the following day. I got a shock cause the stock price dropped by one-third of its last closing price! Only then I realised the existence of the XB (ex-Bonus) indicator. There was a 2 for 1 bonus for this stock. Problem is I will only get the bonus on the following week. While waiting for the bonus, I could only look at the stock price going downwards and I could not trade the stock cause I don't own the bonus share yet. Now got stuck on this stock while waiting for bonus...

So, moral of the story, while we are focusing on the charts, do remember to check for any of such things like CD (cum Dividend), CB (cum Bonus), CR (cum Rights), etc. before we consider a stock. I have learned this before and I am still making the mistake. Guess we always "like" to pay before we learn...

Note that some stock charts are not adjusted for such issues. For instance, the charts at UOBKayHian site are not adjusted for Bonus/Rights issues. So be cautious when you look at these charts cause the signal for buy or sell can be misleading!

Link to Stock Wealth blog