Tuesday, April 16, 2013

My Comments of this Recent Market Week at a public blog


  1. OK. I missed calculated the top and lost half of my ytd gains by trying to short the markets. For the meantime, this event has tought me that shorting against a bull market and calling a top is too risky since they are 2 powerful forces you should not bet against when they are together. For now, I'm going to sit on the side and be patient and disciplined. I will wait for the next intermediate bottom and buy in increments as the markets decline. Buy the dips. I will then wait for the markets to rally and make lots of gains as I will be buying triple etf funds to ride the way up the hill in May. In the markets, the only way to make money is by making decisions with probabilities. And now I fully agree with the saying that the trend is your friend.
    Reply
  2. Hey Joseph. Good comment. Trend is the only friend one should have in this market. Market tends to deceive the majority with its cunning ways. However, if you trade with the trend you are more likely to get bailed out on a wrong entry vs if you enter against the trend.

    However, always keep in mind that any counter-trend move can turn into a new trend or new bear market, under the right circumstances. In other words, when majority of investors get confortable with a direction of trend, it reverses. Therefore, one should keep this possibility in mind.
    Reply
  3. I agree. But, it's a risk I'm willing to take. It is the probability of the us markets topping and bottoming at the intermediate term level. And with the probability that spx will reach 1650 or more by the end of this year.
Posted by at 2 comments:
Subscribe to: Posts (Atom)