D+189

As the title says, It's been 56 days since i last post out my Success stories here. I know regardless of how busy i am, I should be reminding myself of focusing on daily success.

But rest assured that although i have not been posting my stories here, my mind is as sharp as ever onto my goals and method.

Sometime in early this month, Chris bought me and Terence and we made acquaintance with one of his mentor, Sean.

Sean specializes in Options trading as well as value investing methods to grow his capital. Of course Sean admits that his results are mediocre but the idea was there, Which is to trade and get passive income.

Me and Terence were introduced into Options trading which we had our own research after the talk. And my sentiments are, Options trading would only be good in the US stocks. Besides, Trading in options would contradict what our Mentor, keane had told us(that is to keep our money in ASIA).

I considered my capital still small to trade regionally, and thus, trading in the SGX is sufficient in the time being.

So, Here's a little catch up on my trading recently, I traded Singapore Airport Terminal, Noble group, SMRT as well as a shorting on Allgreen Property.

I can say that i suffered a hugh cut loss for the first 2 stocks. The Macro Economical factors had make the financial markets volatile. In early April, It was Greece debts hogging all over the news, Then, it came that Goldman Sachs were in a investigation of Fraud.

In May, the whole of Europe were in the news as Portugual, Ireland, Greece and Spain (P.I.G.S) were in a huge budget deficit and requires borrowing from IMF and the European Central Bank (ECB) .

China were also thrown into the lime-light when they reported an inflation rate of 11% which obviously does not help in calming investors nerves. And just this week, We saw on the news between North and South Korea engaging harsh exchanges.

With Newspapers going as far as claiming that the North Korea are ready for war and South Korea having the backing of Japan, US. This certainly doesn't helps much in the timing as many would have thought of 'bad luck' speaking of such coincidence.

So, That was a recap of that happened during the days when i was busy preparing for my exams as well as monitoring the financial market every evening.

I can say that I've made a bad move in trading Noble stock. As because of that decision, I suffered a major cut loss (which is necessary to protect my remaining capital) . It was a move that I didn't seen it coming and all this caught me by surprise. And you can say that I do have troubles in my mind at times when i was feeling remorseful for my mistake.

BUT, I believe that i have the Mental strength to overcome such mistakes. I told myself, i should feel lucky that i suffered such mistakes when i am trading only with a small start-up capital. What would have happened if i had traded with a bigger capital? I'm sure i would have suffered a deeper psychological blow.

This is something that i have to learn and i kindly remind all my friends that if you're trading, train your mind in handling bigger risk appetite and management. A costly lesson like mine might easily makes you shun from stocks forever, period.

Trading is a journey of experiences of emotional control and risk management. I'm taking the positive out of the recent mistake and i believed i had grown from strength to strength with the experiences i had.

There's a saying in the army: "What doesn't kill you, Makes you stronger."

And now, You can be sure that i wouldn't be falling down or giving up on trading this easily.

Despite my recent 'downfall', I will still be posting my views on the Macro issues since the external factors are making the financial market very volatile. Do learn that his is only my views and use it at your own discretion.

On 24 may, Straits Time Index (STI) broke critical support levels which was a sign of 'bears are winning the bulls'.

On 25 may, STI rebounded weakly but nonetheless, a positive gain. My view is that such results are expected to persist amidst the recent events that could raise or take away investor's confidence easily. In short, People are being cautious and most of them are trading on news. The company certainly are doing well, Posting year-on-year profit of more than 40% gains (for some) but people are still dumping their shares.

On 26 may (today), STI continued to rebound strongly and some might argue that the 'deep correction' is over. But What i can say is still the same, With the external events happening around us, Volatility in the market would be here to stay. Although the Bulls may re-appear if the STI continues it's rebound until the end of the week, I believe that the investor's confidence would only be regained if clearer waters are been sighted. Of course, Since I am trading the trend, I would also recommend to monitor some possible 'rebounding' stocks.

And if the STI pullback tomorrow, It would reinforce the idea of people 'shorting' the markets. Some have profited from shorting especially with the recent 'correction' and selldown sentiments. But my advise again to my friends whom are trading, be very careful because we never know whether a technical rebound would take place after the correction.

lastly, Always Set Cut Loss Limits to protect your capital and i must really admit, the fact that your capital is well protected allows you to sleep properly at night!

With this, I shall end my post with a quote i read from the newspaper, Professor Robert Pozen from Harvard University was being asked about how we can overcome this economic crisis and this was a statement that caught me eye:

"When there are very high leverage in the system, It means that everybody is running for the exits at the same time!"