For Realist and others of a same mind on how to trade the market ....
Being a newbie (3months) I have never experienced a Bear OR Bull market.
Everything I read, all the great traders past and present (especially 1 on this forum who has taught me so much) seem to advocate strict stop losses trade the trend etc...
What I have seen during the past three months has truly astounded me.
I thought the stock market was supposed to be a level playing field, no manipulation, honest reporting ..blah blah..
How do you explain or logically follow the goings on recently?
DOW down 250 1 day on report of bad loans and 1 Million forclosures etc...
Next day a 200 point swing to close 60 higher even though all the other world indicies finished in a sea of red..
What happened .. did all the defaulters pay of debts overnight and the lending institutions are not going broke after all? I know there are other things driving the market but this seemed the main reason for the sell off.
Our ASX down 100+ yesterday and UP 100+ today.
Its a guessing game where logic and reason does not seem to exist and the massively funded institions run the show playing with our super money and the gullibles new meat $$ who try to guess what will happen tomorrow.
So REALIST you may well be right ... sink everything into CBA and WOW, or something safe collect dividends and be reasonably sure that years down the track you will probably do much better than bank interest.
Who cares about the daily heaving and hoing UP and DOWN.
In the long run you will probably end up in front.
AND NO ... I am not bitter or have been caught out.
I hold nothing at the moment and am watching with amusement the daily goings on.
So I started with 15K now have 15.97K after 3 trades (thanks to SMY)
Any suggestions what I should do with it IF I DECIDE to stay trading shares.
Quite happy to watch for the next 3-6 months to see what develops and learn along the way.