Wednesday, January 9, 2008

Update

I've never seen stock indexes continuously go down like this (Gee, 7 days in a row?) without any pullback. It's almost as if by the time stop-runs are done, new sellers step in and this cycles steadily. This is where I shouldn't do anything. Yesterday, I tried to catch a falling knife with an aggressive stop, but given today's action, I wouldn't jump in.

Updates on my current positions:

Although both spread and lumber trades are long term (minimum 6 months), it's painful to watch my P&L goes down. I'm willing to risk my entire portfolio. If I need to, I will not day-trade to maintrain these two. It was a great buy and it'll be a better buy if price comes down.

Although I was not in, I know a guy who was in Coffee or Silver trade for 2+ years before taking a real decent profit. This kind of opportunity doesn't come everyday. I'm prepared for futher down move, stagnation and spike up move.

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