I bump into a friend a week ago and the first thing we talk about is the market. So i ask him how is he doing in the market. He reply in a sad tone saying that he is not doing good. Then i ask him how about the whole of last year, did you made a profit. He said he dint made profit. Then we chatted and i ask him again, what happen that you dint made a profit last year. Din't I share with you my methods and recommend some useful books to read. He said he did read them but dint use it.Bcos he dint wan to cut lost. Anyway the general trend of the market is going up, so doesnt matter to cut lost anot, just hold it and hopefully in a couple of months can make money.
I told him you are gambling.If the price hit the cut lost price, pls cut lost. If you horizon for investment is 2 months, then follow it. Once it is 2 months take profit or cut lost. Right now his capital is stuck and some stocks that are moving up, he do not have the money to buy it.He is also afraid that if he sell out his current holding to buy these stocks, these stock might fall and the ones that he sold might rise. OMG what a contradict.
IF you are facing these problem pls wake up. Trading and investment should be a thing that is not pressurizing. Just follow the rule and dont let your emotion be in the picture.Dont use hope and luck analysis.
OK, Some fact of STI
I collected some data from 2007 to 2010 on the number of up days and the number of down days on STI.
Friday has always been a day where alot of people said that is a profit taking day as it approach the weekend, however to my surprise, it has the highest percentage of up days thru out 2007 to 2010. Then follow by Monday, Wednesday, Tuesday and Thursday. Thursday is the least number of up day thru out these years.
Which mean to say buying on Thursday and selling on Friday or the next Friday would have a higher chance of making money.
