Wednesday, February 28, 2007

A Historic Moment

This is a day to remember. Market performed worse than SARs, 911 combined... this is second only to gulf war in 1991. Open gapped down so much at open that short selling isn't sensible, going long needs courage. This is a good lesson where i must record down. Dec, if you are reading 2 yrs down the road, I hope you are leading the life you dream. Remember, money was never your motivation, it is the getting there. Always remain humble and learn, never ever 快乐无人格.

1) Never be over exposed to the market
2) Meltdown can happen suddenly
3) Never Greed . Always take profit on the way up
4) Never buy more than what you can afford to
5) In a panic sell like today, watch for rebound
6) Ask not what had happened or going to happen, but ask what you going to do when the market gets there

This selling is different. It is at the top. While many times when we have this kind of sell off, it is happening as a blow off move in a downtrend to reverse. Now I think we should watch out for bearish divergence in the making for what is to be coming....a rebound.

My plans:
1) Liquidate my positions at the next rebound, nevermind if the market continues to trade higher, if it does, prepare to short when I see a clear divergence.

2) Take a holiday, it was a good run in the market for the last 8 months. I want to note down all the things i did right at some beach under the hot sun with waves crashing onwards the shore and my eyes shielded from the glaring sun with my oakley......ahhh.... song!

There is nothing new in the market. The same things will happen again and again. Market never change because humans never change....spoken by Jesse Livermore, my ang mo shi fu.

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.