Market Crashed - Another Cycle of 97/98?
By success2u
@success2u (60)
Malaysia
March 1, 2007 8:55am CST
Stock market crashed - it is all started with the rumor the China's Government will impose capital earning tax from share trading gain.
This was followed by almost 500 pts dipped on Wall Street - just because of the delay of response and data delivery from the computer system....
Whatever the reason...it is just because the investor is trying to lock in the profit from the early gain...weeks before Chinese New Year festival.
Smart investor will see this as an opportunity to go in again...however even the smartest also screwed during 97/98 crisis. Is this another cycle???
1 response
@optionsguru88 (310)
• Singapore
2 Mar 07
The stock market has been bullish for the past few months so the china stock market crash seemed a good excuse for a market correction.
But before you start "fishing from the bottom" thinking that this stock market correction is over, it's best to study the support level of the market & stocks and use this level as a basis for your entry.
But most importantly, set your stop loss immediately after you entered your position. You may not know whether this stock market correction would evolve into a major stock market crash.
For explanation of stock market trading terms, you can visit http://www.investopedia.com/
Yours Truly,
Tony Chai
http://options4u.blogspot.com
@success2u (60)
• Malaysia
3 Mar 07
You are right. We do not know when it's going to stop. Very good example is when it first dipped on Tuesday 27 Feb (our local bourse Kuala Lumpur Stock Exc) closed 38 pts. down. Everybody might think it's time to go in again.
However when Wall Street plunged almost 500 pts. that night (US Market is 8 hrs later than ours), Wednesday opening dipped another 101 pts. - the biggest movement in history. And closed 40 pts. for that day 28 Feb 07.
So again a lot of people are thinking this might be a good entry points because market had lost almost 10% for the last two days and try to make an entry...but as you know...if anybody can predict the market...he/she should be rich already.
The moment you go in (including me of course) on Thursday 1 Mar...f**k another 18 pts down for the day and finally another 16 pts down on Fri 2 Mar (that's the end for this week). May we have a nice weekend.
For this four consecutive days, I have lost almost 30% of my capital (don't mentioned about what I've made before) and we hope the week should be better.
