Guess why I got time to update this blog?! I slept early 🙂 US market started to just fall over the edge in the first thirty minutes, that’s despite good data coming in from jobs and durable goods early in the day. I reckon, this is going to be a selloff day – because, as I posted last night, with data as good as this, rate rise might VERY soon come into the picture,,, and of course, at these prices, in comes the V word : Valuation.
Since last week, I’ve been feeling queasy at buying FB above 77.50 but, bad weather prevented me from selling my stock instead it carrier over to this week and it kept going up and I was in there hedging… however, that prices marched on and on, so I had to get out of that hedging position quickly and ride the upside. It skipped close to 79 level and I was staring at it at disbelief. Yes, listen to that “intuition” because the day ended, close to 77. And it could go lower, today there is a GDP announcement and it may continue yesterday’s selloff, or some brave souls might go “bargain hunting”. I hope they are brave and quick, because another V word is upon us : Volatility. Herein lies the wisdom of taking System and Market workshops like the one I am giving. So I invite you all to my upcoming workshops, the one scheduled last week was moved because of the flooding, to October 18, but the organizers say that’s already full. Email me at charmel@highheeledtraders.com to register your interest for the next. Learn to grow your capital in any market. Get that advantage.
Now, I want to share an article “Mystery Man Who Moves Japanese Markets Made More than 1 Million Trades I enjoyed about a Japanese trader who was once a gamer…. so many nuggets of wisdom (from his interview) :
On “bling” … “The kind of person who wastes money on that stuff would never have made it this far,” says Uemura, whom traders know as Kemu. “Self-control is so important. You have to conserve your assets. That’s what insulates you from the downturns and gives you the ammunition to make money.”
… the game taught a bigger lesson: when to cut and run. “I was a pretty confident player, but just like in the real world, the more opponents you have, the worse your chances are,” he says. “You lose nothing by running.” … CIS says he bets wrong four out of 10 times. The trick is to sell the losers fast while letting the winners ride. For him, a well-played stop-loss is just about the most beautiful trade there is.
And…the One Rule
If there’s one basic principle, he says—repeatedly and slowly, as if instructing a child—it is this: “Buy stocks that are being bought, and sell stocks that are being sold.”
And just my input : Trading can be stressful, but it does not have to be. I teach managing stress in our workshop “Investing Success Bootcamp”.
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I must admit, I am feeling less concerned about the time spent gaming of my kids. There’s wisdom after all. LOL
Here’s that article again. Enjoy!
RED on Valuation
