While it was a scary day in the market yesterday, some of my students shorted in the morning and managed to cover their shorts in the afternoon. Why? Because at 3.30pm, I shared my outlook with them and advocate them to book some profits for short term trading first as I can sensed that the market was turning. Well, it was not right at the bottom, however at 3.30pm, some stocks had already bottomed out and rebounded a little. As for others who are still holding on to shorts, today you might have to go through some reactions first because STI will open green in the morning.
When everyone thinks the market is bearish and do the same thing which is to short sell, the BBs will do the reverse and catch those shortists, it's always good to book profits first before it all turn to losses. So today, I believe that will be the case for those who shorted yesterday and did not book profits. Congrats to those who were in the SMMG Club because your profits was secured at the bottom of the panic without having to go through reactions today!!
Ronald K - Market Psychologist - The Big Speculator
