Monday, August 26, 2019

Back to basic.. The timing and the trend

The biggest challenge is NOT the market. The biggest challenge is our Views/Opinions. This is biggest challenge and predicament EVERYONE will face since each and everyone of us have our own views or opinions of the market and rightfully believe that market should behave according to our views or beliefs.

The real truth is market is NOT going to move according to our opinions ALL the time. In most cases, sometime market does act according to our beliefs. Why?

Market has it's own agenda and will move in the direction of it own agenda. I will not be able to decipher that agenda. What I do know is ultimately market will move according to our agenda despite moving against our agenda. Next to ask is what do we do when market is not behaving per our views?

What I also do know is when the TIME is ripe to change, market will change on its own accord while we wait for it to happen.

It is not that our opinions are wrong. But rather the timing is wrong. If the timing is wrong, what do we do?????

1. CUT LOSS  and PUT a SELL STOP or BUY STOP to re-enter. We can do a trailing STOP order.

2. IF we have buffer that can withstand the HEADWIND and we don't need to do anything.

It depends on what our strategy and game plan on making profits. Short or long term?

The stronger our view or opinion, the harder it is for us to adapt and follow the market.

In conclusion, as long as there are BUYER(s) willing to pay more than the last transacted price, the up trend will continue. In a downtrend, as long as there are SELLER(s) will to sell lower than the last concluded price, the trend will go down lower. Why some someone willing to sell lower or buy higher? I have no idea and don't really matter. All I am interested is the timing of cycle change.  
      

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