Tuesday, November 28, 2006
Be happy when market slump
Today, global markets all go down.
I bought some put options on HSI and Bank of China early this morning. Therer is already a 20% to 70% increase in value. The gearing is about 10-20 times. So, about half of the lost today in my long term portfolio should be offset by the gain. The situation can be even better if the market further go down another 5%.
I am still bullish for the long term. Selling short is just a way to handle my emotion. By marking profit on the down side, I would feel better. And I would be more patient while waiting for buying oppuntinities. This help me to stay emotionally neutral and increase the chance for making correct decision later on.
I bought some put options on HSI and Bank of China early this morning. Therer is already a 20% to 70% increase in value. The gearing is about 10-20 times. So, about half of the lost today in my long term portfolio should be offset by the gain. The situation can be even better if the market further go down another 5%.
I am still bullish for the long term. Selling short is just a way to handle my emotion. By marking profit on the down side, I would feel better. And I would be more patient while waiting for buying oppuntinities. This help me to stay emotionally neutral and increase the chance for making correct decision later on.
# posted by Lobo @ 12:11 AM 
