ADR Tends to Follow its Home Market and the World Financial Markets Tend to Echo Each Other
I have know for long that the world financial markets tend to echoing each other and ADR issues have the tendency following its home market performance but I hardly pay attention how much the world market went up yesterday.
I just found out that China and Hong Kong index went up almost 4% yesterday. Japan went up 1.63%. Most Europe market went up 3% yesterday. For Baidu which is a high beta stock usually the percentage it went up or down will be bigger then the index. In fact its change is usually two times of the Nasdaq or its home market.
So I don’t understand why I took a short position this morning when the market was up only 100 point (DIJ). That was 1.3% only. And I don’t understand why I took the short position on Bidu when it was up only $9 which is 3.5%.
First I was wrong on taking short position. Second I was wrong on taking the short position before the market running out of its potential today. Third I was wrong on taking the short position on Bidu and fourth I was wrong on breaking two of my guidelines. I didn’t think twice the probability of a better entry point. I have doubled my initial bet of on a trading day.
What a messy day. Should I take lost right now?
Related posts:
 |
 Digg |
 Stumbleupon |
 Del.icio.us |
 Reddit |
 Technorati |
 |
U can follow my trades and u will amke money.
U can reach me on gchat.
Tony Sterrett
mystocksmakemoney@gmail.com
Thanks Tony. I would love to carry out our conversation on this blog if you don’t mind. I believe I have already disclosed the information you requested on this blog like how much money I am trading with. Why not let us know your thoughts here? Please don’t be offended cause I see no reason for not doing that.
Thanks
Sorry to hear about that, I would cover half today. Last thing you want is another gap up tomorrow. the charts are overbought and the macd divergence looks like its about to roll,you should be able to break even on a gap down tomorrow. GL
Thanks I would hope so. I am out of mind today. Didn’t do much homework before I enter.
always check for the economic calendar, housing numbers, if better than expected the markets could go higher.
TUESDAY
Pending Home Sales Index
10:00 AM ET
People make similar mistakes. Don’t worry too much. You will make your money back. I lost over $7000 just about half hour into the session on May 4. Just because I held overnight 2000 shares of SKF. I cut my loss and started to day trade on SKF. On May 5, 6 and 7 I made $3000+ each day. You need to be patient if you swing trade. And, you need to have plenty of time during the day. This can be tough.
Best Luck to All!