2017年4月25日 星期二

25/4/2017, Is what I am doing correct? Is my new trading strategy feasible?

After conducting the research to investigate the volatility of a typical bull market, it is found that during a bull/bear market, HSI usually changes ~2000-4000 points and then it will turn around.

Hence, my new trading strategy is to gradually buy Inverse HSI ETF when it has already risen ~3000 points and gradually buy HSI ETF when it has already drop ~3000 points.

It is clear that now we are under bull market and HSI has already risen ~3000 points( From 21500 to 24500). Hence I started to buy inverse HSI ETF when it was around 24200 and buy more and it hit ~23800, However, now HSI bounces up to 24455(25 Apr 2017 data) and I already have some loss, which makes me worried about the potential huge loss.

Therefore, the purpose of today's topic is whether it is a good strategy or whether I am not mentally-strong enough to execute this strategy without any hesitation. Indeed, at least in this moment, I still truly believe this trading strategy works. What make it worse is my mental condition. Being mentally strong is really vital to survive in stock market, where you need to use your money, which is very hard-earned by you or someone who trusts you very much, to do a lot of gambling.

Hopefully, I can survive in this casino.

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