Thursday, May 24, 2007

Bears fired first salvo

I was getting bored and internally i can feel my patience tested over the last few weeks. My stocks are not appreciating as much as I would like. I see many stocks seducing me. This is exactly the same situation as when I began trading many years ago. They will seduce me, I would have dumped my winners and get into them. Then they will dump me at a loss and i look stupid. That's why I have been staying discipline to my trading system and rules. I dripped blood and swear that I will never trade like I did in the past. Since then, I have been trading consistently with profits, knowing exactly what to do and when to do it. I call it a Paradigm Shift.

I am and will be away for the next 5 days attending National Achievers Congress plus World Internet Summit. No, I am not one of the speakers if that's what you are thinking, this time round i'm learning about wealth creation! Maybe I have never shared this openly, but I will take this chance. Stock Market is only a place for me to grow my wealth, my capital. After which, a portion of the winning must be reinvested into the market but! another portion will be invested to build passive income. No! Trading is not a passive income. Trading is my business. Passive income is something you won't need to be around yet the money keep coming to you. Most of you know I was one of the first to start a trading blog with google adsense program. And if you still don't get what i mean, look at the left panel....... kekeke If!!! you still don't know what i mean, are you going to understand the more difficult stock market?

I thought the market was in safe hands and there was follow through buying. Alan's warning about Shanghai market came at the worst time possible because I won't be online to react! Fear not, I am not concerned about the paper profit. I am more concern about where the market is heading. Market has to pull back and I have been preparing for this mentally almost everyday. Just when I throw caution to the wind, Alan has to open his big mouth. Why did i have to prepare mentally? This is psychology in trading. Being mentally prepared, I will know exactly what i will do thus I am in control. Let me assure you once again, there is no way one can predict the exact top and to lose some profits back to market is normal, do not take it personally. So long, nett nett you are up in the money. Every pull back from this top ought to be scrutinised closely. Let me assure you again, when market tanks in 2000, economy is still strong and bullish. Slowly but surely market went lower and lower, when everyone realise it is a bear market, a good % of money was lost! That is why I am never complacent at any pull back or correction. Stocks or shares is the first point of leverage and easily accessible to the majority. When one's value shrink due to market contraction, one thing leads to another, it will then affect the next market, probably property if one cannot pay off mortgage because he needs to pay for his losses in stock market...etc.. thus the crash of the economy. This is just a generalised opinion.

Alright! Tomorrow is Friday. Time to look at the weekly chart of your stocks and anticipate how it will close the week. I am really looking forward to offload more stocks now to book in profits. Again buy signals failed. Something is shifting...time to be nimble.

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.