I got quite a number of emails asking what’s my view on the market after the recent sell-offs.
The problem is nothing new: Europe Sovereign Debt Crisis
YES… still the same old problem.
Personally, I feel the debt crisis is simply not enough to crash the market.
Do you really think those Wall Street traders cannot anticipate all these Greece, Spain, Portugal debt issues in advance?
By the time you read the news and react to it, you are too late already.
So, after many days of selling in the markets, and if only now you are thinking of selling your stocks… too late.
I can guarantee that when you “cut loss”, most likely price will reverse back up again.
Then when price goes up, you feel like you are missing out, you go and chase… you get trapped again because you bought at the highest and price start to fall again.
The cycle repeats… again and again and again.
“I am a long term/market cycle investor, what should I do?”
If you are into longer term investing… you need to form your own view and have the conviction to stick to it.
Do you think the market is gonna be bullish or bearish within the next 6 months, 1 year, 2 years etc?
If you think it’s bullish, then hold on to your stocks and forget all these “noise” in the market.
You cannot be emotional when your stock price just drop a bit and you are scared like hell.
Because when you enter, be it for short term trading or long term investment, you should already know your “stop loss” or threshold level you can take.
My view is still remains the same: Bullish (at least till end of 2012)
This is my personal view. I could be wrong. If you are bearish, I respect your view. This is what makes the market interesting.
Since I maintain my bullish stance, every sell-off is an opportunity for me to go long for my short term swing trade.
Do you realize that I seldom talk about those good FA stocks that I buy-and-hold? I mostly talk about short term trading.
That is because I am already invested in those companies which I feel is undervalued. Once I am vested in it, there is nothing much for me to do.
I just buy and hold on those good FA stocks. I don’t really care about the fluctuation.
So, all in all, I am looking for opportunity to long. There are counters which I am already vested in it. I will buy on dips as long as I maintain my bullish view.