Sunday, May 6, 2007

There is always tomorrow

The market again pushed the shorts like me to the edge. I need to continue to reduce my short and put positions if there is a chance. I'm wrong and I need to increase cash. If it starts to correct, then good for me and I can get out of some positions in a higher price.
  1. Even though I think the market will have a tough time ahead, but I've been on the wrong side since last November.
  2. My plays in PM and uranium saved me so far this year, so trust your instincts, but verify it before you commit too large of a position. I didn't verify and the market's Feb.27th crash so far was just a one day wonder, and I thought I got the green light to short.
  3. And please don't try to find all the reasons why the market behaves certain way, sometimes, there is none. That's why we have internet bubble in 2000. So don't be the one to be run over by the markets.
  4. My main problem so far is money management, I didn't honor my rules. From now on, I'll give a 5% on all positions and 15% on options. You don't need to eat the whole dish to know it's bad, you should know from first bite.
  5. Life is great if you have the ability to learn and be better in the future.
  6. You need a strong will and deafness to defeat.
  7. You need to adjust quickly and realize quickly if something really bad is coming.
  8. You need to be perfect in order to make great money in the stock market long term, but you only need to be nimble and have common sense to make some money in the stock market. That's what I intent to do.
  9. Sometimes, common sense is so obvious and so boring that no one is even thinking about it.
  10. Making money in the market is simple, it's just not easy. How many people know that simple is the way to go, but people like complex solutions and almost always forget the simple and best way to play the market.
  11. I had some successes in market before; but you're as good as your last trade, so be really careful out there.

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