Saturday, November 7, 2015

Daily rants

* It is a sideway market and impacted by daily news. When we have good news, the market rises and vice versa. I bet it would last until the end of this year. Next year, all eyes will be on the rate hike.

Strategy: Buy at dip and sell at temporary peak. In August, I bought 4 stocks: GM, GILD, AAPL and GNW on the same day. Sold GM yesterday for over 10% gain and GNW for 10% gain in ONE day. The other two stocks have over 5% gain. Proofs are available.

* The market is still risky. I try to maintain 50% in cash. If I followed my books, I should have 100% in cash before the August correction. I am just a human being blinded by my greed and fears and emotionally attached.

* BABA will depreciate further. If so, it just follows the average pattern of IPOs described next. It rises big on the first day of the IPO; the strategy is to buy it in the morning and sell it at the end of the day. Enjoys the rise during the honeymoon period. Then returns to its IPO price. Dips when the time elapses so the managers/owners can sell their own stock

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