Tuesday, January 01, 2008

A Tricky 2008

It has been a wonderful 4 years rally and the risk going forward is higher. Many experts are warning to expect a volatile year in 2008. I think it makes sense. Going forward, if the stock isn't behaving, I will be prudent with my profits.

Most of the stocks still hasn't broken through their lower highs hence i will still trade light and not load too heavy. Sector wise, banks are definitely in my radar until they report a quater without subprime headache. Commodities sector including oil palm remains hot going into the year, while many thinks their prices are too high, do not forget the golden rule, the high goes higher, the low goes lower. Hence I am looking forward to build 2 positions in Jan. A long position in an uptrending stock and a short position in a downtrending stock.

As DJ closed into the negative by slightly more than 100 points. Tomorrow I will be watching how market takes the selling. Quickpicks should be back tomorrow evening!

I'm sorry that I didn't update the blog as regularly as i wished. 2007 has been a crazy year for me as i undertook major changes in life. A career change, marriage, moving all in the 2H07. I needed the time to adjust. Now as we are into day 1 of 2008, i shall find my rythem. The lacklustre market interest in the last month of the year also made trading challenging. As much as I like and wanted to trade, the wild swings in prices are very exciting to trade but may not be profitable. I cannot personally relate to it any better because I got swung around like monkey in 2004. I could have easily sucuumb to greed and took on a few positions, but somehow all the books and trading exprience seems to have internalised, not forgetting my shifus sharings.

DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings.