Saturday, October 31, 2009

Dow crashing 250 points, after rallying 200 points the day before.

As you can see, market is unpredictable. One day can rally up by 200 points, the next day will crash down by 250 points. If you are an investor, will you have a peace of mind when you see dow crashes after the day you had bought your stock? Will you be panic in selling your stock in the next trading day at a loss? What if dow goes up by 300 points in the next trading day?

In the past, I definitely will not have a peace of mind when I see dow crashes. One of the reasons why I cannot have a peace of mind is because I invested too much at one go, hoping the markets will go up from the day I invested. This is a wrong thinking. Two days ago, I have added 2 lots of STI ETF in my portfolio, and I am not afraid of losing that money.

In another thought, I really hope that STI will drop below 2400 again so that I can buy some more. I have my own winning plan, so I just follow it without any fear. My advice to all the investor is to stop trying to guess the markets. Plan for your strategy and follow it strictly and fearlessly.

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