Wednesday, 31 December 2008

To leave or to stay


To leave or to stay.
It just likes the Shakespeare’s Hamlet. To be or not to be... That is the Question. “To leave or not to leave (to stay)”. This is the symptom of dilemma which is not a type of psychoanalysis. When one has bought a stock at £ ‘X’ price and the stock goes up a bit (£ ‘X’++), one might continue holding it. He still hope that the stock will further north but sometimes he just did not realize there is nothing can continue further up without an end point. There is always a reflection point. When this happens, one might still believe just a small fluctuation. Once the stock goes down beyond the original price, one might still hope that it will rebound soon. Just like the recent financial crisis, not sure how many people lost their money directly or indirectly. Who would be the winner from this crisis, I believe those that are not greedy might be one of them. Those that have sold their stock without bother to gain big will be the winner.
A couple of my friends are also having this dilemma either to leave or to stay but in different context. They are thinking whether to leave or to stay back in United Kingdom. Since one in a foreign county will certainly feel lonely, home sick and cultural different, but going back they might earn less. At this moment, £ is going down so much and almost equivalent to Euro. If the currency further south, it might be a push factor for them to leave the country. Come to think about it, sometimes money and personal feeling are quite hard to have both. Sometimes you need to put aside your personal feeling to trade off for money. Not sure why our forefather migrated from one place to another. They did that because of opportunity and better life but certainly they need to put aside their family and personal feeling. At the crossroad, I believe is quite difficult to make a decision when one is at the crossroad. No one will know which path is good and which path is bad. Certainly, after you have made the decision just go ahead and accomplish it else do not begin. I hope my friends will know what they want and just make up their mind. Cheers!!

Thursday, 25 December 2008

Fast money BAC

Since October 2008, US money market is really a good place to make fast money. Everytime you observed the stock went down 20-30%, most next few days it will go up. When it went down more than 40% within 1-2 day(s), next few days it will go up sharply. Whatever is going up fast, it will come down fast. So same concept whatever went down will come up. Certainly when you see it recovered about 20-25% should already sell. Don’t be greedy.
For BAC, it went down from $32.22 to $19.63 (Oct 6 to Oct9, 2008) which dropped about 40%. It went up from $19.63 to $26.53 (Oct9 - Oct14, 2008) which reduced the gap about 20%.
Another round is from $18.69 to $11.25 (Nov 11 - Nov 20, 2008) which dropped about 40%. It also went up from $11.25 to $14.69 within a few days which also reduced the gap to about 20% lost. My next bet is on BAC and C, I am hoping this 2 company to go down after the Q4’08 quarter announcement. My target price for BAC is below $12.
 
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