My 1st Million At 33 - yes, you can do it too

On Friday, I just shorted the stock markets via QID and SDS which should cover about 12% to 15% of my long positions. Stock markets just broke thru the necklines on a head-and-shoulder chart formation. It’s quite bearish, even with 0.75% interest rate cut coming in two weeks.

I don’t know whether I will be wrong again last Thursday. Precious metal markets didn’t meet my expectation of exceeding $1000 gold, and I also sold another 10% of my precious metal holdings.

The markets are gyrating in a big time. It’s quite likely that I will be wrong again. But the more important thing is willing to admit that you are wrong right away. I realized that in the past, a lot of my trading mistakes are because I hang onto my mistakes only about 1 day too long. And that has been just too costly.

Only nimble traders can survive in this market environment. I think if you want to trade based upon my posts which are always at least 1 day old (because I pre-write my posts usually 1 or more days earlier), you may be easily in the rough water. I will be flipping my bullish/bearish stand in a minute, and before you know I will be selling or buying big time. Certainly, I won’t have any time to post my real-time move during my trading activities.

My current view of the markets is that the general stock markets are about to begin a big move down. If not, then there may be a short rally of 2 weeks, and then down. Either way, January lows won’t hold. On precious metals, energy, and commodity markets, they are probably very over-bought. My current guess is that they will be turning down, and join the entire markets in a swan dive. Long term wise, both precious metals and energy are still very bullish. If you don’t care the short-term swings of 20+% in these markets, I believe they are good investments for the long term.

Best luck.

Frugal at My 1st Million At 33 .com