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Friday, January 27, 2012

Swimming with the bigger sharks



If the American market is the place where investors considered the deepest pool with the most ferocious sharks, then I'm glad to say that I'm still safe thus far. As I have mentioned in my previous posts, I have decided to widen my opportunities by trading in other markets such as DJIA and HSI and I must say that it has not only broaden my perspective, but have also increased my awareness of the companies and news happening in the western side of the world.

It is not embarrassing to say that I have actually suffered from insomnia when I first took a dip in the US market even with my modest 2.5 years trading experiences. The utmost difference between trading in STI and DJIA is that while trading in STI, you can look at the prices every now and then to be confident and comfortable (or so one might think). However, when trading in the western market, it feels a lot more like gambling even though you're not as you have no idea what direction is the broader market heading towards.

However, it did not take long for me to accommodate myself to suit the broader pace. I did it by setting a stop loss the moment I enter a position. Of course, if the stop loss price is far from the current price, then I would have a stop to protect my profit. This not only allows me to sleep better and more comfortably, but also enforced more discipline in my trading philosophy.

The US market in my honest opinion, is a highly volatile market where I would not recommend for people who are just learning to trade. Referring to the weekly chart, while it has showed strength, the daily chart only showed further weakness as the prices climb. "To hell who said we shouldn't buy when stochastic are in the overbought region", but looked what happened, stochastic has showed that DJIA is overbought for the past 1 month and it is still climbing thus far. Nonetheless, what I really liked about the US market is that you can actually find a handful of counters that perform differently from the market return.

As one might realise, I have stopped posting my trades as like many others, I got tired of it and find it pointless. I was thinking if I should post it on a regular basis instead i.e. monthly, quarterly but we will see how it goes. So far, I have entered 5 trades this month and they have been good so far. I hope this continues while I will take another leap forward if my result this year is proved to be outstanding.

3 comments:

  1. I just bought more T and VZ this week. ^^

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  2. This article is mind blowing I read it and enjoyed. I always find this type of article to learn and gather knowledge.

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    ReplyDelete