Technical | Fundamental Analysis Discussion Stocks Listed In Bursa

Tuesday, December 9, 2008

Bear Market Boot Camp

Bear Market Boot Camp By Zhuge Liang


Take it from the traders who've been in the trenches this year, it's war out there! The last few months have been the most violent in stock market history with bluechips being pulverised one by one rotationally across the board. Wouldn't want to name any to save some of you the truthful agony.


So if you want to survive this market, you've only got two options. Go AWOL into Tibet, where they only trade fur pelts and handicrafts or enlist in today's bear market boot camp.

If you chose the latter get ready to become an active trader, what we call the Navy Seals of investors -- quick, disciplined, and armed to make a killing.

As your platoon leader, Sergeant Screamore often says "It really is a speed market right now. And if you're in this market you better have real time quotes!”

But unlike the Navy, in this squad it’s every man for himself, as loyal investors drop their wounded soldiers – think RESORTS, IOICorp or TMI with each rally.

Want to make it out of this alive? Drop and give us 20 limit orders; it’s time to get up to speed in today's bear market boot camp.

According to Sgt. Screamore, the best way to trade this market is to follow the volatility. "I’d look at the Finance sector (especially the banks) or sin stocks such as BJTOTO, Magnum, GAB & BAT - these are well defined with dividends to boot, he counsels. I think there’s great opportunity to the upside with limited downside. However, take nothing for granted."

The floor of the New York Stock Exchange is a war zone in the never ending battle between bulls and bears.

And lately, the bulls are under siege like Napoleon at Waterloo, the Confederacy at Gettysburg or Plaxico Burress at a nightclub! Closer to home we cannot forget Bukit Kepong historically.

Seriously, we've never seen a bear assault this big, occur this quickly.
The S&P 500 or KLCI has been cut almost in half in a blinding 12 months. Normally bear battles of that magnitude drag on for 2 years.

If you want to make it through alive you’d best take some advice from Sergeant Screamore >>>>>> He says:

1. It’s okay not to play, stay on the sidelines
2. Have an exit plan
3. Never fall in love with a stock
4. Always have a stop loss,
5. Take gains fast (SEE$$$TAKE$$$)

“The difference between professionals and amateurs is the ability to sell, the ability to walk away," reminds Screamore. So in order to battle the bear sometimes you've got to be a bear and leave some trades behind.

What’s the bottom line?

Take no prisoners. And don't ever miss a chance to take some profits.

WELCOME TO HELL!!!!!


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