I Was Hurt Again !
I was hurt again yesterday when I shorted Capitaland at around 11:30am. I am not a gambler and I don't take the market as casino. The short position was entered based on technical ground as there was valid set-up & trigger for short sell. Unfortunately, most ( if not all ) of the short sell signals failed to work amid the current strong uptrend rally. This bull run is not only powerful but quite cunning. Started since Wednesday, each day STI would plunge by as much as 50 points just before mid-day hoovering between positive & negative giving people an impression of an impending pull back. Despite that I have factored in market weakness as an additional filter to the set-up, the market then rally back by 104 points or 62 points after lunch to stop out my positions.
Three trades in two days are all it takes to wipe out my entire gain in April. Fortunately, my risk appetite is not big and this is as far as the market can punish me.
One of my friends Cheridan wrote an e-mail to the Yahoo Group we belong. I really love these two paragraphs from him and I hope he don't mind me quoting it here without his prior consensus: "Today was a day that most or all valid shorting setups failed again.... Anyone and everyone who was buying without any valid setups or reasons. Any Tom, Dick, Harry, May, June or April who was buying simply won! Anyone sitting in front ot the terminal and just clicking the "BUY" key for the past two days was laughing all the way to the bank. The hardworking folks who were doing their homework diligently burnt holes in their pockets. ".
That is true, I spent hours at night to scan for those valid short positions but they all failed. Although I am not defeated, I must say I have succumb to the fact that we shouldn't buck the trend. Many TA books often mention sell signal in a strong uptrend don't always work and buy signal in a strong downtrend often fail. I am convinced counter-trend trade is rather risky although the past week rally was also quite exceptional.
I will need some time to lick my wound and to rebuild my morale!
Three trades in two days are all it takes to wipe out my entire gain in April. Fortunately, my risk appetite is not big and this is as far as the market can punish me.
One of my friends Cheridan wrote an e-mail to the Yahoo Group we belong. I really love these two paragraphs from him and I hope he don't mind me quoting it here without his prior consensus: "Today was a day that most or all valid shorting setups failed again.... Anyone and everyone who was buying without any valid setups or reasons. Any Tom, Dick, Harry, May, June or April who was buying simply won! Anyone sitting in front ot the terminal and just clicking the "BUY" key for the past two days was laughing all the way to the bank. The hardworking folks who were doing their homework diligently burnt holes in their pockets. ".
That is true, I spent hours at night to scan for those valid short positions but they all failed. Although I am not defeated, I must say I have succumb to the fact that we shouldn't buck the trend. Many TA books often mention sell signal in a strong uptrend don't always work and buy signal in a strong downtrend often fail. I am convinced counter-trend trade is rather risky although the past week rally was also quite exceptional.
I will need some time to lick my wound and to rebuild my morale!
Labels: Trading Digest
posted by Market Wizards @ May 08, 2009
Comments: 2
