Monday, 15 September 2008

S-Chips (FT China Index)

Lets do an update on my posting on 11 Aug 2008 regarding the breakdown of support level in FT China Index. The chart has deteriorated quite badly since then. It will take a long while for it to recover! This is how to chart looks today.

The best position one would have right now will be to have short positions in the market (either via futures, CFDs or warrants). Sadly, i didnt have the guts to short the market, and this is an area which i should 'work on' as a trader. Somehow, there is this mental barrier towards shorting in me which i have yet to overcome. :(

As i mentioned in my earlier posting, always try to trade in the direction of the overall trend because the trend is your friend. Always remember that because markets moved in cycles. To make $ from the market, one must be in tune with the cycle. My article on "never catch a falling knife" is a gentle reminder of that principle and China Energy is trading at 21 cents as of 15 Sep 2008.

The few principles which i will repeat over and over:

1. The trend is your friend. (adopting different strategies for trend and counter trend trading).
2. Money management. (position sizing and cutting losses quickly)
3. Methodology. (how to pull the triggers).

Despite the financial look at the brighter side.. our chance to financial freedom will be here again. Sieze the chance as it appears but to sieze this chance, you must have the 4 letter word... (scoll down below)

C - A - S - H


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