Nikkei left me stone cold. It reminds me of my principal who caned me for not following school rules. In my last article I jumped onto Nikkei too early. I should have waited for market confirmation. Nikkei broke support and I had to run first. I shall live to fight another day. I know the game too well to have stuck my neck out to hope for a rebound tomorrow. My lessons in the past taught me to always cut when the loss is still small. I was too early in buying and if I was right, Nikkei would already show me profits. The fact that it went against me showed that I was wrong in my prognosis and that the underlying strength is changing. Cutting loss will prevent a larger lost. Even if Nikkei were to rebound from here, that will be another trading opportunity on it's on and I shall not treat it as "it could have been a cheaper loss". Thinking this way will cause complacent in cutting loss in the future because "past" experience has taught me that stock can rebound.
Market has begun to retrace, it will be a very strong bull should we see strong buying tomorrow. Otherwise, I will be watching for a bottom to form itself. Should market continues to pull back, remember to watch all the good stocks that you have failed to pick up because they ran away too high too fast.
No quickpicks tonight as market direction is unclear for now.
DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings. Copyright © 2006 GrowMoney Blog. All rights reserved.
