The stocks on the SGX are taking a bashing today - a little surprising but something that should be expected.
Hong Kong goes up, China goes up, Dow goes up ... and Singapore SGX does the contrarian thing and goes down! lol.
A lot of people have over bought positions- meaning they basically bought more than they should several days ago- and now - they are cutting their losses rather than picking them up - ie paying physical cash for them now.
I was fortunate not to have anything on board last week- and whatever I bought a month ago I sold before the correction - didn't make all that much however...
I bought into the market yesterday. And have bought a few more stocks today.
The only thing that worries me is if the global market slide, which is a distinct possibility given the rapid rate of ascent. If this happens, then really the smart traders has to get out quick.
Smart traders learn to manage your risk and cut their exposure to the market at appropriate times. Its like braking your car when you see a horrible looking curve in the road- not go faster.
Anyhow, I don't plan to keep the stocks for too long. Will let them go shortly when I make a decent buck. If not, I don't care, just sell and wait for the next wave.
I noticed one shitty thing about my trading life though. I always seem to be missing the bull markets. I was trading in Australian mining stocks in 2004 when the mining boom was just taking off - then stopped got recalled back to Singapore. Then in 2006 I was stuck in Australia during the frantic market bull run here in Singapore.
Its easy to make money during the start and middle sections of the bull runs - now as we reach the finale (I think) its gets progressively more risky and dangerous.
(Update: its seems - from sources - that one of the big funds is being forced to liquidate part of its portfolio - hence the big sell down.)