Monday, May 14, 2012

Capitaland - A Safe Short

I wasn't watching Capitaland until my friend alerted me. I looked into the minute chart and at 4.17pm, I finally saw light that it was ready to go down lower. One can short at the high at 2.74 or 2.72, but the waiting process is a challenge as sometimes it might play with your emotion. I prefer a safer short at 2.69 where there after the stock just tanked down within minutes.

I could have caught the high to short this counter if I am observant enough but I was too engrossed with other counters like GLP and CMA. Sometimes, shorting at the high doesn't necessarily mean it's a good short, but shorting when it's about to tank down is a safer and more calculated short. In that manner, it reduces many emotional factors during the waiting process.

Ronald K - Market Psychologist - The Big Speculator