First of all Tom, ach and ctrp are not really meant for trading at all(mainly because they are not really speculative) so you might not want to do that anymore(both stocks i think are excellent long positions and i think better buy points will come in the near future). Also remember, doing limit orders are really important,i never market order. Single most important thing in trading in my opinion is speculation. The biggest speculation this year has been in the energy sector(because of the energy price fluctuation) and for a little while i think energy sector is still the way to go for trading purposes. However, the market is really crazy right now so many energy plays can be highly risky yet also highly profitable. Tech is always pretty crazy so also good for trading(speaking of tech, i am loving google right now because it is simply way undervalued but a better buy point should be near. Many good option plays ). I know many people are not into shorting but put option plays minimize the risks and can be so so profitable( it is really hard to explain how option works, i had to read an entire book on it, but i will try to in a later post). You also have to realize that when you trade, you don't necessarily love the company 100% but rather you are playing the speculation to make a quick profit and get the hell out of it before there is a market correction. Always take profits along the upward trend of your stock if your stock is a highly speculative stock. Don't ever get too greedy, finding a stock number peak is impossible. Remeber this, bulls make money, bears make money, but pigs lose. It is also very important to know if a stock is secular or cyclical, and you mix this with specualtion to find the big moves before it happens. These are just very basic and rather vague points but there are simply too many things and details i have to cover and to be completely honest i don't think i can do that in a single post without getting tired. So if you have any questions just post it and i will try to answer it the best i can. I will also post my philosophy of investing and trading here and there.
p.s: There is a big difference between how wall street and main street works. What i am trying to say is, the stock number alone does not justify the health of the company so if the stock price of a company you absolutely love drops for no reason, sometimes it is really just dropping for no reason. Constantly do your homework. I personally love to buy when the price dips if i know the price is dropping for stupid or simply no reason. Don't let fear be a reason you sell when the price of your stock is dropping.
2 comments:
i can already see herng falling asleep (with glasses still on, of course) at the computer trying to put all the knowledge in his head into words.
in fact, im surprised you didnt for this post. good job!
i don't even know if its possible to explain everything considering i am still learning more and more daily. But i will definitely try my best
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