High Heeled Traders

China’s GDP came out today — and surprise surprise!¬† There’s no surprise ūüôā¬† 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.

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