I trade both fundamental and speculative counters. For fundamental counters, the stop are usually set a bit further that speculative shares. Why? Because fundamental counters tend to have slow and steady movement, just like a marathon runner. For speculative, they run like a sprinter, very quickly go out of breath.
But both entry and exit are based on my technical analysis. At least it allows me to stay breakeven :p
Why do I trade speculative counters? Because they move fast and you get your adrenalin rush seeing them move. I'm still not yet a good trader, emotion still exist. It's hard to control it since we are only human. So it's really exciting when you see your stock rises (a happy feeling). When it goes further, you get nervous. (feeling jittery), many questions now pops out, will it go further (a sign of greed), or will I lose my open profit (that's fear). Well, the stock market is the greatest show on earth. Everyone likes to watch it. Look at the brokerage open gallery during a bull rally, it's choke full of auntie and uncles that are spending their retirement in front of the big screen. Now, since we have Internet and mobile phones, we will tend to take a peak at our "bet" every few minutes. Oh yes, the greates show on earth......
3 comments:
It is amusing for you to dub the stock market the greatest show on earth. You must have lack of true entertainment. It is indeed a good show if the market is up and you are making money out of it but if it is the reverse, I don't think you would still like the show very much. Think of the US Great Depression era....the show killed.
True, when the time comes, I will write about that..... if I survive it.
Friend when it comes, it comes! You just can't survive!
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