Do you love money ? I think you and I do but the Chinese really loves money.
Two things that really make them rich, I mean filthy rich in China. One is property and the other is the stock market. And they are risk takers though not necessarily prudent in managing risks.
They do not hold back when they think or feel this is the time to go all in. Read article here
I lived in Singapore and thus far I have not heard about the government encouraging the people to put money in the stock market, directly or indirectly. Not China, not USA and maybe some other countries.
Let's take a look at the chart. Both SHCOMP and China A50 which I posted my views (here and here)
Both are up about 30% from the bottom in March 2020 while Hang Seng Index (HSI) is only up about 17%, which offers more potential for upside.
Again, I advocate prudent risk management. I have said and shown through various indices, stocks in Hang Seng and China that I bought that showed good profits. There is no need to ask your friends for money, go to bank and borrow nor sell your house and sink the whole kitchen into the stock market. This , to me is taking on too much risks, maybe not for others.
Average up slowly on each pullback and each time, stick to the 1-2% risk per trade rules. Avoid doubling or tripling your position sizes hoping to make money quicker and within a shorter time. Mr Market can be nice to us but it can also become nasty at a turn of events that you and I cannot know nor predict like the Covid-19.
In the words of legendary Warren Buffett- the first rule of trading is not to lose your money. That means at all time protect your capital. So guys, chill and not to think this bull run is going to be over soon and your fear of missing out cause you to go take on additional risks.
Think of your loved ones, family and even yourself. Always think what if I am wrong ? That is not being cowardly like some traders said but being RESPONSIBLE. Maybe, you think it is ok to go all in and worst case scenario, you just put in the extra hours to earn back the money.
But if you have dependants that need your income to pay the bills, education, rentals, etc, then it is wiser to think twice. Everyone situation is different, do the best you can without following others blindly. Such "all or nothing" mindset is taking things to extreme and is betting big on luck to be on their side.
Another thing is having peace of mind. If your portfolio is in the red, your life still goes on. But if it affects you so much then, you probably have weighed too much in and you need to pull back a little. Strike a balance.
May the blessings of God be with you.
1 Peter 5:8
Two things that really make them rich, I mean filthy rich in China. One is property and the other is the stock market. And they are risk takers though not necessarily prudent in managing risks.
They do not hold back when they think or feel this is the time to go all in. Read article here
I lived in Singapore and thus far I have not heard about the government encouraging the people to put money in the stock market, directly or indirectly. Not China, not USA and maybe some other countries.
Let's take a look at the chart. Both SHCOMP and China A50 which I posted my views (here and here)
Both are up about 30% from the bottom in March 2020 while Hang Seng Index (HSI) is only up about 17%, which offers more potential for upside.
Again, I advocate prudent risk management. I have said and shown through various indices, stocks in Hang Seng and China that I bought that showed good profits. There is no need to ask your friends for money, go to bank and borrow nor sell your house and sink the whole kitchen into the stock market. This , to me is taking on too much risks, maybe not for others.
Average up slowly on each pullback and each time, stick to the 1-2% risk per trade rules. Avoid doubling or tripling your position sizes hoping to make money quicker and within a shorter time. Mr Market can be nice to us but it can also become nasty at a turn of events that you and I cannot know nor predict like the Covid-19.
In the words of legendary Warren Buffett- the first rule of trading is not to lose your money. That means at all time protect your capital. So guys, chill and not to think this bull run is going to be over soon and your fear of missing out cause you to go take on additional risks.
Think of your loved ones, family and even yourself. Always think what if I am wrong ? That is not being cowardly like some traders said but being RESPONSIBLE. Maybe, you think it is ok to go all in and worst case scenario, you just put in the extra hours to earn back the money.
But if you have dependants that need your income to pay the bills, education, rentals, etc, then it is wiser to think twice. Everyone situation is different, do the best you can without following others blindly. Such "all or nothing" mindset is taking things to extreme and is betting big on luck to be on their side.
Another thing is having peace of mind. If your portfolio is in the red, your life still goes on. But if it affects you so much then, you probably have weighed too much in and you need to pull back a little. Strike a balance.
May the blessings of God be with you.
1 Peter 5:8
Comment:
In the long term , I am bullish on China and its equities but short term (which can happen anytime), I expect a correction. So, good to take profits when you made it and adjust your SL. Hedge your positions as well. Take care
