Monday, March 23, 2009

Sticking to the plan

Alot of questions went through my mind after market closed. Why did i miss the rally? Why am i still holding to my STI shorts? Why i shorted so low? Why I bothered to hedge and not somersaulted to long position last week? My actions last week is pretty retarded on the hindsight... reading my past week's blog, i realise i sensed trouble with me short positions as early as mid-week. The only explanation i have is complacency. I have this tendency to throw money away after a good run. I had been profitable since Nov'08... March'09 looks set to break the trend. Though i may lament the loss in $$$.... but more importantly i know i need to get on my feet, dust myself and look ahead. My most immediate task is not to allow my profits for 2009 to be wiped out.

My hedge on OCBC worked nicely. However HSI's rally tipped the scale off balanced and i am nett in the red currently with 3 positions. STI shorted at 1560, HSI shorted at 12,900 and OCBC long at 4.53 . As always, here I am sharing with you my losing trades and the exact level. My intention is to share my lesson to all readers.
This is as real as it can get. I will never hide my losing trades or bad positions. Especially new traders. Losing and winning is part and parcel of this game. I am going to trade myself out of trouble, lets see if i can successfully end March in profits or smaller loss.

Alot of people have been asking me if i have covered my shorts. I have not. Remember the adage - buy low sell high? Now is obviously high... why would i want to buy back at high? Furthermore, some of those stocks are already trading at resistance. If anything, i should be looking to sell at this high. Of course i cannot blindly sell into the rallies. I need to see candlestick weakness... however at the same time i understand with such a strong surge, the pull back may be equally sharp. The timing here is thus important. I am sticking to my plans conceived over the weekend.

I won't burn a big hole because of my OCBC long. However what i am contemplating is a buy on dips strategy for this week. There should be dips during intra-week especially after a strong Monday. But there are two types of dips... either shallow or those normal retracement. Last week we saw a shallow pull back.

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.