Wednesday, October 21, 2009

Mobile One

I bought some shares of M1 on 14 Oct, acting on a breakout signal from my systems, and also from the chart formation of an ascending triangle. All my technical indicators showed it was not bad.

A few days later, I received an ad newsletter from ChartNexus. The example they used to show the effectiveness of technical analysis is M1! And they are drawing a conclusion which was directly opposite to mine! M1 is their prime candidate for shorting. They also explained their reasons, using patterns on the technical indicators. I hesitated, but M1's price droped a couple of cents, but remained relatively stable.

Today, just after the pre-close, the price droped sharply to below my stop-loss level. As the market has already closed, I can only act tomorrow.

One market guru used to teach us: Always be humble in the market, no matter how successful you are. When you are in the market, you are competing with the best brains this world may have ever produced.

Through this incident, I learnt a new way of looking at my technical indicators. A lesson learnt. Lucky thing is I control my risk tight. As long as tomorrow the price does not go free fall, I shall have no more than my expected loss at entry. Wish myself good luck.

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