Thursday, September 22, 2011

QE3 is a disappointment, and stock markets tank instead

To be honest, I am hoping for QE3 to save me from my trapped long positions, but it has instead caused me to lose even more. Now, I have to act quickly.

I have been waiting for the all-important 21 Sep Bernanake speech to lift markets, but it is all a wait in vain. The bear market, which started last month, continued to charge forward, leaving my portfolio in tatters. I have to make some key decisions.

Now, of course, all markets go through bull and bear, and the bull will eventually return, if I hold long enough. Therefore, the counters in my long term portfolio, I will not touch. Instead, I will be adding as markets dip further and further.

The counters that I trade with leverage, I will be making major adjustments. I am going to trim these positions (albeit too late), but the bear market is still young, and there would be more downside to come. Next,I will look to short those rallies. Eyeing Hang Seng.

Most importantly, not to lose my cool and my capital, and in a few months' time, slowly buy into a market (this time without leverage)as I believe it would be the great great sale that I have been preparing for.

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