Misunderstandings to be clarified  

Posted by Book Eater in

This is just to list down the things I wrote in this blog that could have been misunderstood:

On March 17,2008 article entitled "In the utter annihilation..."
1.) Let me clarify that the contrarian attitude for a day was all verified using technical indicators. It was a very difficult risk/reward trade. It depends on which system you trade. I've learned my errors. I knew that I traded it and the risk/reward was too slim so the next day I sold it all at market open. bought at 2610, sold all shares at 2660 but not all was sold there. Because the market had little takers, 80% was sold at 2660, the rest had to be sold at 2640. There was no good money to be made. I learned not to play with the Philippine Market anymore as there's bound to be more losses trading deadcat bounces than earning decently.

On the blog
2.) I wrote a blog primarily to help myself. It is not in any way for anyone to trade on their own. It's a blog, a rant for myself. I appreciate comments so that I can learn to correct my mistakes.

3.) I learn better through criticisms so I'm thankful for them.

On money management
4.) I've yet to provide myself a decent track record. I am still a newbie. I started trading exactly just last July 11,2007. I only learned Technical Analysis December 2007. I am no one to listen for any trading advice. I am in a continuous learning phase. I appreciate people who have decent CAGR track records to actually help me out, books/blogs that offer their trading wisdom etc.

On a comment
5.) Anonymous: Thanks for pointing out the contrarian article. I rarely get to update my situation kasi. I think it may be partly due to non-updating that may give way to lots of misunderstandings. Sorry about that. And yes, it rarely pays to be a contrarian because it only happens very few times. This is the reason why I also exited the position immediately.
I was also willing to sell lower than my cutloss point if I had to. That to me is trading discipline.

To defend Jesse Livermore, he's not perfect. Yes he made his mistakes. He blew his fortunes out and learned from them. He regained them three times i believe. I dont think Jesse was a contrarian though. The reason why he shorted one day before the October 1929 incident, it was all based on technicals. I also know of someone (let us keep him anonymous) who greatly told his friends to sell USD at 52 pesos. People laughed at him. See the peso now? 41 something? Let's say it goes to 44? Still far from 52 right? Reason? Technical Charts. Rounding top kasi eh. In a way, it seemed as though he was a contrarian but it was all technicals.

I know that the comment was there to help me. You meant good. :)

Hope to get to know you better. You seem to know better so I hope to learn from you. If you could probably just tell me who you are, so I don't have to guess. You know how to find me. Thanks.


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