Fed will most likely to cut a quarter point interest rate to 2% in this coming Fed Policy Meeting. May will be a crucial month in this trading year. Will it be a bearish month as sell in May go Away ?

From the technical point of view, if Dow can break above the 13k, and May is a bullish month then the market will most likely recover in the end of the year. If May happen to be sell off, then we have to see if there are any strength in the month of October. Finally the official start to admit that US is in Recession. This will be confirm by this week GDP data. If it is confirm that US in Recession, then there will be a mini roller coaster in the market. Well when people see it as bad news and react to the FEAR, I will be sitting sideline of short a few stock down and be ready to pick up value stock as the market fall by irrational fear.

This is because the stock market already price in for the recession. Economy always lag behind the market as the market predict the economy. Well anything can happen in the market so i shall trade with cautious.

Last week when the EUR/USD make the all time high, I was shorting it. This is because the Fed interest rate has been already so low. This means that after the .25 cut in this Wednesday, the Fed will most likely to hold the interest rate and thus the EUR/USD will be coming down as the Dollar will be bottom up and stable. I will be keep on monitoring the dollar as strong dollar will also boost up the economy and in turn boost up the market.

So if you do not know what to do with your money, please to not let the so call “Pro” to handle your money. The best person to handle your money is yourself. Invest in yourself so to invest smartly. You will be able to beat the inflation rate with the right set of education. Well it is better to put your money in the FD when you do not know how to invest your money. At the very least you will not lose too much money by parking your money in the bank.

Have Fun Making your money work for YOU.

I will be starting a series of Winning Trading Habit. I always find that to be successful in trading or investing, you always need get your mindset and habit right. What really differentiate a Master Trader and a Novice Trader is their habit and mindset. Without further ado, i will present you guys the ultimate and the most important habit that needed to be successful in the market.

No 1 Winning Habit - Preservation of Capital

It simply means that you do not lose money to the market. If you did not lose money to the market, then in long run you will be able to make money from those people who lost the money. Some of the famous investors quotes are base on this winning formula.

Rule No. 1 - Never Lose Money
Rule No. 2 - Never Forget Rule No. 1
- Warren Buffett

Survive first and make money afterwards
- George Soros

If you don’t bet, you can’t win. If you lose all your chips, you can’t bet.
- Larry Hite

It is always easy to make money but to keep money is very difficult. People tend to look for entry without thinking and setting the exit. Whenever you go into a trade, you will need to have an exit price. Cut lost fast to preserve the capital. It is fine to lose a battle as long as you win a war. Look far ahead instead of near target. We will always make mistake and lose money. It is part and parcel of the game. The main thing is to make money at the end of the tunnel.

Trading or investing is always related to gambling. So what is the different between Gambling and Trading? Actually there are a lot of different between the both of them yet somehow or rather they are quite similar too. Well when you do not know what you are doing, then you are gambling. This is because you enter a trade base on hope and luck. Gambling in a casino is no different as you hope that you will get the best card or the roulette’s ball will hit at your stated price.

Professional Gambler always make money from the casino. This is because they aim to make a sum of money first. Then after they have make the money, they will use the money to play which will reduce their risk as they preserve their capital. So the most they can lose will be other people money. Playing with other people money will reduce the fear in them.

It is the same concept in trading. Make use of the money that you have make from the market to grow more of it. Trading with winning money will reduce your fear. Preservation of Capital is extremely useful during the bear market as Cash is King. There will be tons of opportunity(stocks) out there for you to buy. Usually people crash and burn during the bear market, thus they fail to capture the opportunity present to them in the bear market.

There is a saying… If you stay in the market long enough, you will be lucky enough to make a sudden windfall. I have been trading for the pass 20 months, I have experience a few windfall during this period of trading. TTWO, GS, GOOG and other have already give me a surprise windfall. I almost make tons of money on BSC put just before the drop from 60+ to 2 dollars. Even in this bear market, My account still up by as high as 15% and now is ding donging at 5% to 10%.

So Trade to trade well …
Preserve your Capital …
If you don’t lose money, money will come to you …