Automobile's rescue plan priced in

Alot of us may have forgotten that after the senate rejected the bailout for the big 3, bush already came out and said he will do his best to save them. The market first tanked after news leaked out about how the big 3 may run out of cash. Then bush's assurance came and that saved the bulls. I know because i was short the market... maddening!! hahaha Hence last Friday's rescue plan didn't send the market into a rally.... i could understand why. Just look at the news, isn't it easy? When market goes up, it will give bullish reasons, when it comes down, it will say market again focuses on economic woes. As a friend of mine put it.... financial world is actually an illusion, you choose to see what you want to see.... hahaha

At closing on Friday, i added Yanlord short after I spotted the shooting star on the daily chart as well as resisted by the 100-day MA. My opinion of a weak closing was right and thus i follow through with my plan. Anyway a screen by XPertTrader revealed that properties are hitting into resistance. Hence i have a total of 3 short positions in the market right now.... StraitsAsia, Yanlord & HSI. My wish for Monday morning is that Nikkei focuses on the weak closing and the rally which fizzled out on Dow.

A friend checked with me almost daily on "have i covered my straitsasia". Maybe he is reading this entry. keke I explained.... let ur profits ride and cut ur losses fast. This process has been internalised. That's why you see i rather cut my capitaland rather fast and now since i am in profits, i ride. My rationale is, if i am right about the direction, StraitsAsia will continue to go lower which means my profit will swell. If i am wrong, i earn less. If i just take my profits just because it has went to my favour today then how to grow money? Alot of times, i have seen people trading by the day... buy today, tomolo up just sell... then come down a little, buy... then stuck... then avg down... then continue to get stuck... ahhh.... if this is familiar to u... then it's time u wake up.. keke Focus on DIRECTION rather than daily fluctuations. Intra-day is even worse.... countless of people keep asking me about live data... i found it wierd... if these people has been making consistently good money from end of day data... why don't they imrpove on their position sizing and money mgmt instead? Why do they want to take more risk by trading intra-day? It's worse if they believe money can only be made in intra-day charts than daily charts. Alexander Elder in his book wrote about it before.... those who can't manage daily chart will be slaughtered by the intra-day charts.


Capitaland

6pm now... i am counting down to a brand new week! Huat arh! So far so good... ever since i started to work hard... pocket also grew... keke Haiyo.... why i so lazy for the past few months??? Maybe can tan more! keke Actually blogging not bad ma... can share my trading experience and try to help as many beginners as possible...then at the same time, by writting, i am actually re-inforcing my thoughts. It is easy to think inside the head, but if you write it down, it's a completely different feeling. Try it! such is trading... there will bound to be losses... there will be wins.. now i'm in high spirit... haha last few weeks.. when i keep losing... so frustratings... Welcome to the world of trading!


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.