Monday, October 5, 2009

Why I made mistakes with Wilmar and Orchard Parade

I knew the correction is coming, but yet, I continued to place bets on long positions. And therefore, I lost.

Not only did I make the same mistake once, but I made it twice. I am now back to where I started in the beginning of the year. Totally uncalled for. It seemed I traded under too much pressure, as I wanted to meet my targets for the year.

In addition, I did not look at the big picture. For example, when I bought Orchard Parade, although there was a bullish engulfing on the daily chart, there was a bearish engulfing on the weekly chart. Likewise, Wilmar's weekly chart was equally bearish.

I also did not check what other stocks, and the general market was doing. Had I checked, I would have known that most other stocks were falling or were preparing for a fall. This should already be a clear warning sign.

Winston also warned about the inevitable correction. So, why am I still longing?

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