China XLX was really volatile on Tuesday and i had to cut my loss when it dropped below my cost in sudden sell down only to see it end up closing at the 53.5 at the end of the day..... :( in any case, i also sold off my position in Li Heng at 55c to "offset" my losses in China XLX.
Really a waste of time and effort and money trading in this kind of down market. It seemed like playing on the 'short side' will be more profitable.
4 comments:
Same sentiments here.
Apparently, TA doesn't work in bear market.
hahaha on the contrary, i think TA works. :) remember the trend is your friend. When we are doing counter trend trading, has to be nimble. :)
lol aren't you contradicting yourself?
Anyway, the reason why I said TA doesn't work in bear market is because, you might see a stock that satisfy all your TA criteria. However, due to heavy selling in the US overnight (STI more or less correlated to DJIA), your stock will very unlikely carry on its previous day trend.
You might argue that the trend will bounce back few days later but you do not know if DJIA will carry on its heavy selling for the next few days.
In other words and IMO, TA does not work really well in extreme volatile market. Trend can be easily broken by heavy selling worldwide.
Lets just put it this way. I usually like to trade in the in the direction of the overall trend (which is currently downtrend) but sometimes we want to do 'counter-trend' trading, so we pulled the trigger when certain TA criteria are met. We expect the best but are prepared for the worst (via cut loss). So if cut loss levels is hit, we just have to be disciplined and get out. :) That is the reason why i said the trend is our friend :)
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