Where is the ASX going from here? I opened a few positions late last week thinking we had seen a bottom and i was expecting the market to move up and past the 5000 level. however after the losses on monday and today a few of the stock i bought into kept falling, RIO OST and AWC i got stopped out on a few position and decided to cut my loses and closed all my long positions. This is because previously i thought the market was strong enough to keep moving forward but now i am not sure and i dont want to be exposed to the market at this point.
I am a new trader i have only made about 12 trades before and i was doing okay untill i exposed all my capital to the market expecting a bullish move. (My net profit now is -3%)I realise now that by diversifing between 4 different stocks was kind of futile because it was all chasing the same idea, being that the market was past its bottom.
Now i have no idea about the ASX and where its heading, last week i felt bullish on the entire market and i thought we had just been hit by a barrage of bad news, i thought that the polls were more or less telling us that the mining tax wouldnt go through (less chance of rudd keeping government) and that the market was ready to move up.
At this point i dont know what to think, i guess im leaning to the bearish side, a lot of critics saying that the euro's plan to save greece will only delay the inevitable. Not sure about the election anymore, neither rudd of abott look popular. not sure why commodity prices were hit so hard recently??
The market looks so volatile i don't know what to make of everything that has been happening, i guess in the future i will just be careful in volatile periods like this again.
I would appreciate any thoughts on the overal market or any advice, thanks.
PS i wasnt trying to bottom pick the market.. i thought 1 week of gains ment senitment was changing, but now it looks like i bought at the top of a counter trend in the overal market.