China’s GDP came out today — and surprise surprise! There’s no surprise 🙂 I think we all know all-along that it will be a slower growth, manufacturing and investments are going to be lower. The positives being highlighted is that there is growth in consumption (from retail sales) and services (and non-manufacturing). There is also broad expectation that the Chinese government will continue to have stimulus measures to help the economy grow at the pace to still sustain the population.
So do I predict a move up from here? Most are expecting that the Chinese and other governments will counter the slowing global growth with more stimulus. That’s always happened before. So there’s definitely room for a move up.
Incidentally, I was asked in another forum what timeframe do I choose for Options because they do expire. I said given this volatile market, I choose between 1-2 weeks. To which, the fellow said I have to have mad predicting skills in such a short time frame to be profitable.
No, I don’t have mad predicting skills. I just enter when the risk – reward is attractive (3X what I risk), set my stop, when I am right, I enjoy the profitable run as much as I can. If I am wrong, I just get out as quickly as it hits my stop which makes investors become profitable.
So there are times that I don’t enter the market when I think the risk is too big – rather than thinking alone that I am right or wrong.