Today's Market Performance

Generally speaking, there were some profit-taking in today's market. I was surprised to see that the Penny stocks got killed relentlessly today.

I agree that riding the bull is never easy. It always has ups and downs. Life is never a single straight line. There will surely be obstacles along the way. It is more like the stormy pacific ocean. It will try to shake you off-scale, frighten you off and threaten you to jump off the boat before the stormy ride is over. The only way, maybe, is to hang on for as long as possible until the storm loses its energy. One of the costliest mistakes investors make is to mistook profit-taking for the reversal of trend.

When the market rises sharply steep, investors who entered the market earlier, will start to unload money from the market. These in turn causes short-term investors to follow the herd and cut their losses. These includes the contra players who cannot afford to hold. Chain reaction.

From my humble point of view, there will always be profit-taking. Learn to appreciate and recognise corrections. Fundamentals will not change overnight and the current uptrend is still positive at least until the Bei Jing Olympics and US General Elections are over. Ride the bull run even as the market tries to shake you off. The market will resume its upward bull run so do not panick and exit the market too early!

Hope that helps.