Last Friday, I was not confident that the market would go up, however there were certain stocks that exude strength that made me took a position in it. Well, the 274 points slammed down in Dow last Friday was predictable and all well planned. Actually, I was just telling Eng like 2 weeks back that we are going to see a weak rally, after all the short coverings, the market would tank. Believe it or not, it's up to individual and I don't have to lie. As much as I know the market would tank, I still made a silly mistake of going long which cost me money. This lead to a downfall of my own actions. I am not upset and dejected on losing money because I have no regards for money, but the thing that upset me is I know something is going to happen and I went the opposite direction. That's like saying you know the 4D number for this week and yet you went to buy another number.
To cut short the story, I am coming out with a new money management rule which would allow me to ride big profits and take small losses. I thought about it over the weekend and know how am I going to do it, it has nothing to do with timing or turn or whatsoever, those are just technicals. I believed the human nature skills are much more important that any technical skills.
STI: I don't think it's a good day to short today. It will be wiser to stay neutral and watch first.
Ronald K - Market Psychologist - The Big Speculator
