the red sea

Really wish i could split open the red sea! :P

Well, the STI this week has been a sea of red, mirroring the Aug phenomena. But the effect for me was greater than in Aug, my stocks plunged $16K in a week. Yes, that's my loss.

My daring stock, Cosco, dropped from a peak of $8.20 to $6.45 within a week :( Predicting that year end will see a rally in the stock market, i valiantly vested further in Cosco today.

If you think that my situation is bad, and i must be panicking, you're wrong. Volatility is part and parcel of trading in the equity market. And opportunities come only when there is votality. If the market is flat throughout, who can profit from it?

Well, my principle is to take calculated risks, and to invest only the amount that i can bear to lose. That means that i'm not taking the speculative route, but looking at long term investment in fundamentally strong stocks.

It's really fun to play the market - like strategy gaming. Well i had my fair share of mistakes too - energy and technology stocks have been plunging like mad. But all these are hopefully a valuable lesson to me.

Haha, anyway do hope my prediction is right and i'll have a Merry Xmas. Otherwise, hmmm you can give me a treat :)