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Market 09/02 – 09/05

The market’s rally is definitely over. Steep drop more than 2% on high volume ended this rally attempt. See the chart bellow. The only thing I can do these days is to wait. I am not going to sell my positions unless they hit my stop loss level. Some stocks lost ground such as AFAM. Investors may collect their gains after about 100% growth of this stock since June 2008, so the stock can go into correction. However I am slightly below my purchase point so there is no need selling the stock of the company, which is making money. After this correction there is a potential for further growth. However, if the price touches my sell point the stop loss order will sell automatically and I will buy back only when the stock passes through my screening again. Well now the hardest part of stock trading comes – patience. It is really tough sitting aside, thinking about your own money being wasted by not working on your account… Well let’s wait for the future and wait for another rally attempt and growth. When looking at the chart it seemed that the market would make it and go through this, but economic fears and scared investors shot this attempt down. On the other hand when this gets over – and believe me, one day this bear market ends up, we will be rewarded by a strong rally and good gains. Until then, we must sit down and wait. However, during this waiting period I will continue studying as well as contributing cash to my account and make myself ready for future bull market.

Market chart

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