Would like to hear your thoughts on what are your plans when the second wave / second market crash arrives?

Based on how crazy the market has been since the last recovery, would your strategy change compared to what you did for the last crash?

What would you bet on next?

I am just sharing with opinions without any vested interest and it's best you read it with an opinion mind because end of the day, what's important is that you need to know you and I are absolutely different. Our style of trading/investing/punting or what now is different. You just need to find what's your best style of play you are strongest at and just to stick your methods and strategies...

As it is, for glove counters, as quarterly earnings nears, all focus will be on it. This is simply because the glove counters are all driven/chased sky high because of the expectations that they earn a shiit load of money. Anything else, means that all these is nothing but a house of cards... Scientist predicts earnings numbers, buyers chase....

Best you refer posting #2507

That's the main risk. These scientists have set the bar extremely high (in my opinion) for the glove stocks. These companies have to meet these high bars to justify the current prices... and when the glove stocks don't hit those targets, then buyers run the risk of seeing the glove stocks correct......(and obviously the key is how big a correction?)

Averaging down... means you are buying more of a stock that has gone wrong.... some call it buying more of your mistake. 

Got time now...     

With the hindsight of the past .... I draw up the following plan.

It's labelled on the same chart



1. Bought 2000 shares at 1.80.   
Total cost 3600

2. Bought 2000 shares at 1.15
Total cost 5900. Number of shares = 4000

3. Bought 2000 shares at 1.00
Total cost 7900. Number of shares = 6000

4. Bought 5000 shares at 0.55
Total cost 10650. Number of shares = 11000

5. Bought 2000 shares at 0.70
Total cost 12,050. Number of shares = 13000

6. Bought 2000 shares at 0.70
Total cost 13450. Number of shares = 15000

7. Bought 2000 shares at 0.70.
Total cost 14850. Number of shares = 17000
Reasonable average down plan?

One is now holding 17000 shares
Total invested jumped from 3600 to 14850
Total average cost 0.8735

AirAsia today is 70 sen.
So the investment at market price = 17000x70 = 11900
Total current loss = 2950

Now if one had cut loss, say at 1.60, the original investment of 2000 shares at 1.80, would had yielded a loss of 400.

Now? One dumped in extra 11250 into AirAsia... but the losses that one did not want to take at 1.60, had snow balled to 2950, despite dumping in extra 11900
And we have to note that I cheated cos I cherry picked the average down points, and I cherry picked the quantity. This is with the help of hindsight charting.
Without the help of charting, it's very much possible that my Average Down plan might be even much worst!

See how Average Down failed big time?
average down is a big no...
cos ultimately we are betting and praying that the market is kind enough to CORRECT our poor initial bet.

*pls double check my counting *

Now still can enter bornoil?

Ya... this is why it's been said many times b4 that the trend is your friend....





self explanatory what the charts were saying lately ......

Of course ... it can and it will happen... cause trends do changes.

But look back at the past couple of months, when it was down trending.... what could you have learned from it?