"The market can remain irrational longer than you can stay solvent"
As always, it is vital that you size your positions appropriately and not focus on earning back losses, but rather only focus on the market now and going forward. Maybe you'll get lucky and the market will move your direction next time, but over time a lack of risk control will ruin everyone.
Best.
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True. Going short has been a disaster, to say the least.
I've been cutting back these last two days simply because it's been the first chance to do so after a long time.
Whether Nifty will go up or down is getting hard to say with the buying pattern - they've taken us for a TA ride.:)
Dear Lee,
nicely said. I always maintain " cut your losers smaller..."
BTW,since the watershed Oct'08 there was 2 meaningful bull
rallies in US market -- One is "Tim Rally"(Nov),other is the current "Pandit Rally".. Can you compare these two chart wise,specially by S&P. If I am not bothering you too much try a post on this.
Have a nice time ahead.
TC
sajal
a small add if you dont get me..I mean by "Tim Rally" the rally initiated by the news of Timothy Geithner formally to be appointed Treasuary Secy . it was in 15-20 th of Nov,08.
Yoda, I too scaled back on that day we tested 2750 area...But still added back some when we tested 2820 area yest...Who knows where this ends..I see clear topping patterns on all the indicators I watch.And sentiment has turned reasonably bullish among general public...
Dont know..This rally has been different..In feel..
Tough call..My gut says we may have topped...Or will top today :P Famous last words...However keeping leverage less is good advice to everyone!
Sajal, got you..This rally is definitely stronger than any of the other bear market rallies so far..I will try and post some charts later.
Best.
I see the topping pattern too, Lee. But I think there's too much buying on dips for this rally to end.
Anyway, I'm hoping you're right. Fingers crossed.:)
All Main scrips are looking over bought.......
But Over bought & over sold conditions can stay for long time....
This is in Reply to the conversation btw you (Lee) and Guy in the Shoutbox.
We all trade what works for us, but I feel though put Bluntly, Guy has a point. The main difference btw Gut Feel based trading and TA is that in Gut based, we tend to anticipate, TA is about reacting.
Current Market is Bullish (on Intraday and Daily). Only on extreme long term are we bearish. Over last few sessions, we havent been able to even break previous days low, if this does not mean strength, I am not sure what can qualify as strength.
TA trading is all about trading with the Trend. Being a Contrarian is fine, but it has nothing to do with TA. Like your Blog, but my thoughts.
@Sinchana,well said.
ss :)
give him a break...i mean when his calls work everyone goes ga-ga over the analysis..and when it doesnt there are all sort of micro analysis,and theoretical statements.
its perhaps our nature to be over critical and not put us in other' shoes as often as we wld like to
Thanks Shaq...Atleast one guy understands my pain..
Most guys running blogs hedge their comments both ways..That way they can say they are right always..I dont do that..And so I am wrong sometimes..And most folks have a field day with that...what can I say...Have your fun while you can.
Best.
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