by winston » Thu Oct 30, 2008 9:03 pm
TOL:-
Some of the stocks that I have been following have gone up by 30% to 40% over the past 2 days. I did not manage to buy them at the bottom and now that they have gone up so much, it is not worth chasing them anymore..
So where do we go from here ?
1) The economy and the business outlook are not getting better
2) I have not found any industry that would do that well during the slowdown
3) Is this the beginning of a Bull Market or is this a Bear Market Rally ?
4) If it is a new Bull Market, then it is okay to buy on dips going forward
5) If this is a Bear Market rally then it is an opportunity to sell
6) For the existing stocks in my portfolio, I will put a Trailing Stop Loss of 3% to lock in any gains
7) For stocks on my Watchlist, I may buy some ( in stages ) when there is a 50% retracement
8) There could be some profit-taking tomorrow before the week-end
9 Monday is important. If the market rallies on Monday on high volume, it could be the turning point although the economy is going in the other direction...
Enjoy the ride !
It's all about "how much you made when you were right" & "how little you lost when you were wrong"