I hate to say it... but things are looking really bullish... if you study the pull back with the trading volume, it is not difficult to notice that Monday's sell-off volume is on the low side... Tues and Wed we traded ups and downs.. but really... the volume isn't there. Perhaps the market is waiting for some news. Window dressing is over... i am disappointed that the sell off on Monday has no follow through. Market always fall faster than when it rises. Hence when there is no followthrough... nan dao... Now tomorrow is where the G20 will meet. Market anticipation is nothing productive will come out of it.... so far G whatever group meeting, nothing concrete comes out of it. However, if for the first time, they craft out convincing plans with action steps... this is where the market may celebrate.
Right now, it seems we are consolidating sideways. I unwinded my HSI shorts with a mere 100 points profit... of course, what's new? The market closes 200 points lower.. This is really getting the nerves of me.. the timing of my trades has been pretty off recently. I managed to find out what's wrong with me. I came out with 2 reasons:
1. I traded by guessing where the market is likely heading to.
2. I have no idea where market is heading.
Point 2 means if i am trading without an idea where the market is heading, i have lost my edge. Remember i mentioned about making anticipations work for you? Like when you anticpate A to happen then B will lead to C... My A has been wrong for the last 2 weeks and yet i put on positions. That to me is a sign of mental weakness and pure risk taking. All these losses will begin to eat at my confidence.
I will not take up anymore new positions for now until i figure out where this market is heading. While i may not take up any new positions, it doesn't mean i will stop looking at the market.. This is the common mistake alot of people made. "No position, gua simi"... how wrong they are... once you want to make trading a serious business, day in day out, you need to observe... one day, you will have an anticipation of where the market is heading.
I also have a serious problem which i cannot explain.... why do i feel that the market is firm and yet i am keeping my shorts? My fear is, this firm market may be too obvious to be true and i am trying to be a contarian? Contarian or am I trying too hard? Over-analyse?
By the way, I'll be travelling to KL again next few days...
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.
