I gambled in the stock market yesterday. Perhaps the belief that the stock market will rebound has become a self-fulfilling prophecy, I playfully bought 5 lots of Noble without waiting for confirmation. Luckily, it was only 5 lots, for the market plunged afterwards. I was quick to get out at 0.93, for a total loss of S$300.
I learnt an expensive, but important lesson: Never trade in haste. What should trigger my trades from now onwards? Firstly, I have given up on the idea of a rebound. Trading countertrend is truly risky. Secondly, I would long only if market trend changes. That would mean watching for base formations, and they are likely to take months to take place. Third, if indeed a rebound materialises, I would look out for shorting opportunities. The trend is my friend from now onwards.
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