The market is getting trickier. Even though I am bearish, I learnt that I need to be neutral when the chart tells me so. The most important thing is not be bias and keep buying and averaging down. One should only look to long at the right timing and buy when the knife had hit the bottom. While many others called for long recently, I called for short. Those calling for longs are buying on its way down but ask yourself honestly, what's the emotion and feeling you exude when you buy and the stock keep coming down? How much more $$ can you use to average down? The anxiety, worries, and the sleepless nights that you need to put through HOPING to see your stock performing according to your way. That's something most traders want to avoid. What we all want to achieve is to buy at the bottom then sell high when it rebound, so as to reduce emotion as much as possible right?
So today what's my outlook for today? For those who shorted, I think it's wise to book profits today to secure $$ as STI may gap down. For those who likes bigger swings and risks, you can look to cover your shorts at a later stage. The market is now unclear to me at this stage. $$ in pocket is never wrong, wait for the turn before making a decision again. That's my game plan for today.
Ronald K - Market Psychologist - The Big Speculator
