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Saturday, October 31, 2009

Crash coming... Panicking? Don't!

Ok, an imminent crash is coming. Do you panic? Run! Shout help?!

DON'T!

First, ask yourself if you are a trader or an investor.

Trader
If you are a trader going on the long side, then it's time to cut loss or look for an exit strategy. Then place yourself on the short side. Being nimble is key.

A trader thrives on volatility and nimbleness. Be it bull or crash, both are opportunities to profit from going short or long. The key is discipline in following a system.


Investor
If you are an investor, a crash is an opportunity to buy more of your favourite company at a lower price!

A crash is like a sale. When there are sales in shopping centres, throngs of people buy more. Yet when the stock market is giving a sale, people run. Is there any logic in that?



It's time to stay calm and rational, to define your money and risk management strategy in such turbulent times.

3 comments:

  1. Hi, Momo, this is new investor. I just started a new blog but I have no idea how to post a chart up. Can teach?
    http://cnanewinvestor.blogspot.com/

    ReplyDelete
  2. Hallo!

    I saw your blog. You have successfully posted the charts right?

    ReplyDelete
  3. Theirs sure enough gloom and doom to go around thats for sure.

    ReplyDelete

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