Monday, May 26, 2008

A very familiar experience

It has been a very long time.... really a very long time since i am caught in a loser situation. Remember i went long 5 stocks 2 weeks ago when i declare good risk/reward. Yes although my risk is limited, i am now staring at 3 paper loss. Although they are capped at 2% risk control, but it still doesn't feel good to see 3 losing position. The 4th stock had been cut last Friday to go into this decline lighter. The 5th stock is still trending and has yet to trigger my trailing stop. Not to forget i was long hsi on Friday. :P

It's good that the dampening Dow isn't trading tonight. Frankly speaking, i did not see this coming. I was expecting a pull back of the normal kind, typical of an uptrend. Will i short now? No. Major support are still holding in many stocks. Unless they start to give way, which is a clue to me that the market will head lower, otherwise i will still believe all is not over.

If i am right, market starts to turn upwards, then that will be my best conviction.

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