I am free!

For the last two months, I was quite busy with my networking business and my CFA level 1 examination preparation. I sat for my CFA level 1 examination on 7 June 2009. Ya, it was a very tough exam to pass. Normally, CFA level 1 passing rate is around 35%. I really hope this time i can manage to pass it.

Now i can focus on my trading. These few days the world markets are down a lot. I think it is really a good chance for us to start to accumulate stocks. Most people avoid buying stocks when the market is in red region, in fact, they sell their stock when the market is in the red. Then they buy when the market is in green region.

The way i invest is more to a contrarian style. Thus I will try to persuade myself to buy stocks when the market is in the red. Contrarian styple is an investment style that goes against prevailing market trends by buying assets that are performing poorly and then selling when they perform well. A contrarian investor believes that the people who say the market is going up do so only when they are fully invested and have no further purchasing power. At this point, the market is at a peak. On the other hand, when people predict a downturn, they have already sold out, at which point the market can only go up. Contrarian investing also emphasizes out-of-favor securities with low P/E ratios.

At first, i found it hard to successfully persuade myself to buy stocks when the market is in the red. When the market is in the red, it felt like the end of the world.

Now, i am getting more used to buying stocks when the market is in the green. From my experience, it is more profitable when we buy stocks when the market is in the red region and sell stocks when the market is in the green region.

Early of June I sold around 30% of my portfolio as i was not confident that the market would keep on going up. I was not able to accurately predict the market, the market kept on going up the last few days. Some stocks are already down 20-30% in the last few days.

Again, i would to say, now it is quite a good time to start accumulate good stocks.I still think the market is in an uptrend.

I will keep you all update with my trade.

Enjoy your trading.

Up! Up! Up!