Like I mentioned yesterday morning not to short anything because I knew the market was due for some short covering. If you read the newspapers/forums/bulletins/bloomberg/marketwatch etc, they were all saying the market was doom and on Monday the Dow Jones would continue to slide. You know, I never believe in those, because those are controlled by the BBs as the BBs already knew what was going to happen.
http://stockmarketmindgames.blogspot.sg/2012/06/downfall-of-ronald-k.html
For me, it's simple. If I am wrong, I don't care if it is short covering or rally or rebound, I will cut and go first because if my initial position was already wrong, then there is no point of hoping and holding on to a losing position. It's best to let go, restart and regain composure. Many felt the pain when I cut loss, however, to tell you the truth, I don't feel a single pain as I told Eng on a Sat afternoon as I have no regards for money. I don't do it for the money but for the game itself. When one ceases on money, the truth will disclose itself.
So today is yet another tricky day. The best is don't trade. It's wise to wait and be patient until that defining moment appears. Don't short just because you see a long red bar and don't long just because you see a long green bar, they are delusional. Don't be skeptical and follow the crowd, have your own thinking. You need a balance. A long red bar doesn't necessarily mean selling and a long green bar doesn't necessarily mean buying. One wrong move will drain your confidence and your funds. The best is to stay neutral and be vigilance.
Ronald K - Market Psychologist - The Big Speculator
