Tuesday, June 16, 2009

It is indeed very ugly

The thing about working in KL is, either u go home at 4pm, otherwise you must stay until 8pm... anything in between, you get stuck in peak hour jam.... that's how it was for me over the last few days. The worse part is the internet at the apartment is super unstable... can't even post anything here. Add all these to the recent market correction, super recipe for a frustrating experience. wahaha

Truth be told, i have 3 long positions! Yeah this should be very juicy and hot to read about keke. When i went long last week, i knew the risk is significantly higher than previous 2 months. Especially when i do not see a follow through in buying after the wave of signals. The only thing that protects me from burning a big hole in my trading account is my stop loss levels with a 2% capital limited loss. Each time when i put up a position, the first thing i would consider is how much am i losing in this trade if i am wrong. As it is now, all 3 of my positions are still closing at the stop loss level i had pre-determined. Will i keep them? This will depend on how the market trades and what are the possible scenarios i have painted.

If this is one of those sharp pull backs in a bull market, then we still have some room to fall. To me, this is only the first stage of this correction. At the next rally, i will definitely reduce my positions from 3 to 1. To turn short, i will do so after i receive either a retest of support levels or the first batch of TT1-short signals.

As of now, another possible scenario is, today is a whipsaw and we will close higher and continue the uptrend. June being June is an usually quiet month where the market can swing either way since the volume is thin. The important clue is what will happen after June where another barrage of company results will come.

I am also patiently waiting to see the 3-stars aligned... that is a very rare signal!

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.