A little surprise everyday
September 14th 2006 13:35
One thing about participating in the stock market, as I'd always mentioned before, is to always expect the unexpected. The adrenalin rush when the market opens and of course, don't forget the fear and excitment during trading hours, if you are an active trader.
The objective is to make a profit as much as possible and avoid losses whenever you can. And on this very premise, any chance to avoid a loss is not shunned which causes market participants, mostly to be deemed risk averse, highly sensitive to market sensitive bad news, such as the recent resource sector downfall because of fears that the resource boom is ending its euphoric ride since 2001. Yet not all bad news hold much ground and those who are able to identify facts from sentiment and understand the herd behaviour, are able to make some money out of the mess; all due to overreaction or undereaction which then over time the market would revert back to thier true value reflecting all relevant information; mean reversion. A case of being a salmon and beating the crowd.
The ASX S&P 200 benchmark index today rose 1.1%, a factor of resource play as initial fears of the sector's downturn did not hold much weight afterall. The overreaction was subsequently corrected. The Porfolio 1.5 - EW gained back some grounds by posting a 0.05% gain to 8.91% in value terms. Unrealised profit closed at $2.822.
The objective is to make a profit as much as possible and avoid losses whenever you can. And on this very premise, any chance to avoid a loss is not shunned which causes market participants, mostly to be deemed risk averse, highly sensitive to market sensitive bad news, such as the recent resource sector downfall because of fears that the resource boom is ending its euphoric ride since 2001. Yet not all bad news hold much ground and those who are able to identify facts from sentiment and understand the herd behaviour, are able to make some money out of the mess; all due to overreaction or undereaction which then over time the market would revert back to thier true value reflecting all relevant information; mean reversion. A case of being a salmon and beating the crowd.
The ASX S&P 200 benchmark index today rose 1.1%, a factor of resource play as initial fears of the sector's downturn did not hold much weight afterall. The overreaction was subsequently corrected. The Porfolio 1.5 - EW gained back some grounds by posting a 0.05% gain to 8.91% in value terms. Unrealised profit closed at $2.822.
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