Today is a really bad day for me. Emotions were running wild and stress levels were up.
What is the reason? you may ask. Well, let me tell you..
Being unemployed gave me an opportunity to try day trading full time. And believe me, it is a lot more exciting than any work i had ever done. Don't get me wrong, i guess i am just passionate about it.
Yesterday, i must say, is the most exciting day on the market. There was a technical crash, as trader calls it.
If you have never seen the type of graph above before, it is the ASX 200 CFD dec forward contract. What it does is it tracks the Australian top 200 companies and chart it. I trade this market because it is more immune to company specific influence. The main chart is japanese candle stick style and the bottom 2 graphs are MACD and RSI (relative strength index.) Both these indicators would indicate when to enter the market.
Before Wednesday, as you can see to the left of the drop, the market was Bullish (going up.) However, that flipped to downward trend (bearish) on Wednesday.. and because the gap was quite big technically, the market got spooked.
That's the technical side of things. Anyway, the fundamental side of things.. the US problems with Lehman Brothers, AIG bail out and etc sparked all these.
Watch it on Reuters here and here
The Reserve Bank (RBA) in the US didn't bail Lehman brothers, but they bailed AIG (an underwriter for insurance that bet on people defaulting on their loan payments.) The RBA thought they helped prevent a market meltdown, but in reality, it opened a can of worms. Does this mean that bad management of companies will be bailed out by Tax payers money, instead of the players? ie the company and the speculators? The market was unsure how to react and the market dips.
Anyway, i lost 5 digits worth of equity on Wednesday (the CFD magnifies any profit or losses 100x), and it was not a good feeling.
But hey, i should count my lucky stars, and most reserve banks in the world poured Billion to trillion dollars into the market.
And Warren Buffet lost a lot more than i did and he is no longer the richest man in the world.
Enough about my rant. I feel bad and couldn't blog like i used to. Will try to continue as normal tomorrow.
1 comments:
That's why the only market I dabble in is the black market.
:)
Buffett foresaw the US devaluation. And he's very smart with his purchases (outstanding companies at a sensible price), so he's favourably geared for any drop.
This is all about greedy people and countries living beyond their means. And global warming.
Roll on the apocolypse; I've got my ninja swords and an ewok village.
P.S. Chin-up, Chin. Buy low, sell high.
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