I got to agree last night I did not short and hold any positions overnight. The market had been sold down quite a lot and I am cautious of any technical rebound that might occur. I prefer to trade safe than to trade irrationally. If the situation is unclear, the best is to stay out. Don't trade just because you want to gamble and make money. That's fatal in all speculation. So this morning, when I saw STI gapped down, I knew I still have chance to short, however it must be fast.
In the morning I breached one golden rule and that was chasing after prices which cost me $1.5k. I was upset with myself on breaching this rule and so I stayed patient and watch. At 10.16am, I shorted Capitaland and I added shorts again at 11.12am. As for why I shorted 2 times instead of 1, I had explained it on the attached picture. I knew if I want to make back my losses, I need to be ultra careful and patient because the market is devious with a lot of BBs killing each other. At 11.56am, I reaped all my reward with a $3K profit. Do I feel happy? NO!! I have a saying, it doesn't matter how much money you make, as long as you are in the market, there is a tendency to loss it all. Unless you can firmly say you take all profits and stop trading, then you shall live in peace with no worries.
What I want to emphasize is it doesn't matter how many losses one made, one's confidence need to always be high up there and treat all losses like it shall be the last. I am just like a normal guy like all of you, not rich and just average only, but if I can do it, so can you. Trust yourself and your skill, but more importantly, cultivate patience, have no fear and emotion, that I think will contribute to your overall success.
Ronald K - Market Psychologist - The Big Speculator
