This is exactly what i am wary about taking long positions in the last few weeks. Any swing trades profits would have been wiped out cleanly. Exactly what i went through in 2004. Like my ang mo shi fu said, "Market never changed because humans never change". Even as of now, everyone i met bound to be stuck in some stocks. Alas, the discipline of cutting loss is found wanting. But i just want to assure you guys out there who are stuck at the high. The past doesn't represent the future. Back then, i was a laughing stock in front of my friends. No problem about that, just stay confidence continue to improve so when the next bull market comes, you will be the last one laughing. Maybe not, WE will be the last one laughing. : )
But one thing you should note is, whatever money lost now, you make sure you still have capital. If 90% is stuck, then raise cash....reevaluate your lifestyle and save up your capital to prepare for the future opportunities. Also, do not be in a revenge mode.... bid ur time and wait for the next bull. The market now is tricky and no longer can we make money from it easily. Hence if you are trying to make back your losses, i'm afraid you will do urself more harm then good.
Dow is now up 200 points. It really makes one wonder, why the fierce selling today? I thought market knew something about Dow's performance tonight and hence had reacted first. But looking at dow now, it dispel my suspicions. STI finished the day with a hammer right near support and with the kind of volume, augers well. National Day rally was dismissed early in the week with a heavy down day. But, the week is still young and there is not stopping us from a good 2 day rebound to marikita. Dow's surging run ahead of Ben's meeting suggest the confidence in the market is higher than i expected. 11,700 will be my resistance to beat. Should we go above this, i shall look to long. Otherwise that is yet another level to short for me. If one is comparing Aug'07 hammer with today's one. There is at least one thing not in common. Hence i won't even be considering it.
Friday and Monday saw me collecting Abalones(Oceanus) happiliy... good high volume breakout i thought. But when it finishes with under the resistance on Monday, i knew i was too early and decided to cut my stake prefering an early loss. Trading breakouts requires guts, convictions and discipline. If you are wrong, it is better to run first as the retrace can be quite deep. Also, our course strategy for rebound caught StraitsAsia last week. However, this is a rebound strategy, which means general trend is still down. Hence one must look to sell at resistance. The principle is simple, in a bear market resistance will be strong.
After my screening with XPertTrader... eh... not so bad leh... there are still a couple of strong gainers. Notables are Sino Enviroment, Synear and ChinaEnergy... Most of the S-shares made a late comeback today too. Nandao the Beijing dream is working it's charm?
GrowMoney QuickPicks
Wilmar
DISCLAIMER: The contents in this website are for fun reading and must not be taken as a buy or sell advice. You must do your own analysis on top of my postings. By reading this blog, you agreed that i am not responsible for your trading.
