Monday, October 1, 2007

Market loves to bait and trick.

This is the current market, the quotes in the snapshot are realtime! Notice how sometimes the market plays trick on you. I just sold PAG last fri and now it surge 6%!

Interestingly, the stock that I sold last fri are those that shot up unbelievably! Well my only take away are the following. Fear hit me when PAG and STI ETF dropped below the price I bought. The price stayed significantly below my buy price by a certain percentage. This cause some internal struggling and questioning of my buy decision. Hence when the price rose up slightly, I grabbed the chance to sell it, thinking that I can reduce my losses by selling it above its 6 weeks trading range, realizing my loss as a result.

So the lesson learnt is that when you buy solid company, hold it unless there is a fundamental change in the company. And I attribute my wrong decision of selling to fear of the market's volatility.

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