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My personal opinion

I hate to say I told you so, but to long on Monday is like living life on the edge. Market is extreme overbought and if you don’t know why, watch the YouTube video again. When market is low, a lot of people are afraid to buy. But when market is so high, then people are thinking of what to buy. Funny, I thought people likes to buy only when there is a Sale? How come it does not apply in stocks? Simple answer: greed and fear. Therefore, to be a good trader, one have to control greed and fear. There is no way you can overcome it, and there is no way you can totally control it. That’s what makes us human. But at least when you recognize the signs, you can at least know when it happens. Like my idol, Tony Robbins mentioned, the first step of solving a problem is to first recognize that you have the problem (or something like that. I forgot the exact phrase).

If you miss the long position run higher over the last few weeks, there will always be another opportunity. I rather stay out from the market and miss making a profit rather than regretting making a losing trade.

And if you are thinking of shorting, do remember your risk. There is a high chance we can form a higher low as the previous run higher was just very strong. Therefore, you just have to understand that you will now be against the trend. Which means, market has a possibility to turn around anytime and run higher. This week, there is a lot of economic news. Japan intervened today, and on Wed, Ben is talking, Fri, Non-farm payroll… oh, go check out the forexfactory to find out what else… Therefore, if there are any number “manipulation”, market may just flew higher. Of course I will be hoping it will go lower, but then, I have a trailing stop all the time.

Down down down…

 




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