Friday, February 27, 2009

Stock market day

I'm writing this blog from my hotel room in Hongkong as I came here for work and some rest and relax moments.

Today I set out to buy something but I couldn't reach certain someone, so I decide to abort. Then I've got Businessweek's latest stories about "Blue Chips Stuck in $10 Bin", that makes me think about writing this blog entry.

When most people read this article, they may think that these stocks are all bad, I should abandon (or sell) all of these stocks then try to pick something after. The reality is that these prices aren't going to stay here long. It'll either go up or go down. But we need to know when the low price does not mean "low quality". That's what I think we should focus on investing in these financial instruments namely "stock".

If you think that these stocks are going down further, you can short these stocks to make profit when they go down even further. I had friends who made a killing with GM stock started to go down very hard. These friends made millions out of the shortfall of others, but hey, we live in Capitalist world, right?

So these 25 stocks, what do you think they will come up or down? If come up, buy long. If go down, short them. Or if you think that you want to manage your risk, then you can choose to build coverage options to make profit in side-way market as it is.

I write this blog kind blur, I know it's not easy to read, but I think I may put some of these thoughts in a more structured way later. Now, I'm off to Repulse Bay. Take it easy everyone.

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