Wednesday 16 May 2012

Starting to get interesting?

Have you been around long enough to remember the bursting of the tech stock bubble? The cry was, as prices plummeted,  "a wonderful buying opportunity." Perhaps this is in the minds of bulls now. The market seems remarkably reluctant to fall. Perhaps the market is being manipulated to stay high to give smarter traders time to get out of their positions and offload their holdings onto the more gullible. Or perhaps I am wrong and we will not see a collapse in the market.

I've just sold the very last dregs of my equities. Little bits and pieces I was holding onto for not very good reasons. I have stoked up my short ETF holdings a little more so I now have 39% in equity shorts and the rest in cash. Since April 6th I am up 2% compared to the market's 6.1% fall. I need a bit of cheer after last year's disastrous performance. The main thing is that I have coped psychologically with the loss and I am in the game and fighting back.

1 comment:

David said...

Hi Paul,
I use CFD's and Put Options for my short trades. I use the same strategies that I use for long trades except that the patterns are short patterns.
I note that you intend to look into Forex trading. I have a lot of experience in that....it's more difficult than stocks if you are a " fundamentals" trader. However, if you are a pattern trader, there is not much difference to stocks except that the market is 24 hours, 5 days a week and very liquid.
Regards
David
http://davidstradingdiary.blogspot.com/