On Wednesday June 6th, I stressed the importance on No Chasing and many were wondering am I nuts because the Dow was going to be green in that night.
http://stockmarketmindgames.blogspot.sg/2012/06/sti-chasing.html
I understand psychology more than news, technicals or fundamentals. As for why I say no chasing, that's because I knew those who chased, the risk and reward will not be there the next day. True enough, within on like 30-45mins, the bull fizzled and gave up their strength. Why is it so? It's simple because it's a super green day in Dow, who wouldn't want to book profit? Of course I don't know if after booking profit, would it continue to tank further or continue it's upwave, I am no god so I can't answer that question. However it's wise to stay neutral and best not to trade because the market is in a very volatile mode. Unless one is fast and is thinking ahead of what the market is going to do, then he shall protect his profits and avoid unnecessary reactions.
Ronald K - Market Psychologist - The Big Speculator
http://stockmarketmindgames.blogspot.sg/2012/06/sti-chasing.html
I understand psychology more than news, technicals or fundamentals. As for why I say no chasing, that's because I knew those who chased, the risk and reward will not be there the next day. True enough, within on like 30-45mins, the bull fizzled and gave up their strength. Why is it so? It's simple because it's a super green day in Dow, who wouldn't want to book profit? Of course I don't know if after booking profit, would it continue to tank further or continue it's upwave, I am no god so I can't answer that question. However it's wise to stay neutral and best not to trade because the market is in a very volatile mode. Unless one is fast and is thinking ahead of what the market is going to do, then he shall protect his profits and avoid unnecessary reactions.
Ronald K - Market Psychologist - The Big Speculator
