Tuesday, August 16, 2011

Excuses to stay out of the stock market

I am looking at the STI and there is a MACD divergence. Secondly, there is a massive flagpole pointing south. The flag is unfurling and it probably will be volatile enough to whipsaw my trades. I am not ruling out shorting some weak stocks with CFDs at this juncture.

I am aware that I may have miss some good setups for shorting earlier this month. However, I am pretty cool about it even though chances like this do not happen much. Why? Because I have about 40 times more trades in Forex than in the stock market per month, plus minus ten.

Anyway I guess I was not ready to jump into the short trade simply because I was not well prepared AND it was one day before the National Day holiday.

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