Sunday, December 24, 2006

Reflections for the week; total returns +$640

Sidenote: It was well worth the 1.4k for the christmas party. $$ is not everything. I believe in trading, skills are important for the long run. While you can lose money, you musn't lose your confidence and we have to keep on honing our skills.

On hinder hindsight, I think it was wise to sell off the warrant. Initially my plan was to hold it till market reopens on tues. I think it was not a wise move at all. 4 days would have passed, and the time decay of warrants would not make it advisable to hold on. Besides, there is too much uncertainty over 4 days that can happen.

Word(s) of advice:
1. Learn to survive the market first
2. Make small profits
3. Make huge profits

I believe I'm somewhere between 1 and 2 now. I survived the May crashdown, and it didn't affected my interest in stocks. I lost 18k and comeback again, learning and reading up to hone my skills, making small profits and learning to discipline to cut losses and capture profits better and better. So, I guess i'm on the right track. Big profits can come later, now i'll be contented to make small ones along the way.

Dow didn't turn out too well on fri night, it closed negative at -70 pts down. Nasdaq dropped 14 pts too. It's actually a good sign. What I hope to see is that when hongkong market opens on wed, it drops substantially to support level. Then I'll buy in, knowing that it will rebound before reaching new heights again before the end of the year. STI too, I think. Problem is while sti opens on tues, hsi opens on wed. One day of difference can change the sentiment and the plan might not work. We'll see how this develops when market opens on tues for singapore.

Total returns so far: + $640