Panic everywhere but not me; hope not you as well

No where to hide! That's the sentiment toady in the market. Panic, panic and panic, everywhere. For me? Not at all! Of course, I'm not a prophet and I cannot pinpoint to the exact moment for the market movement. But as repeatedly said before in my blogs, I have being waiting for this moment for over a year. I actually was thinking that something like this would have occurred shortly after Jun 30, the financial D-day as I called it. It didn't happen so soon. As I said 2 days ago, if the market decisively pierces through the support line at 1250 for S&P, it will be really ugly. Definitely everyone feels that now.

From the investment and trading perspective, I'm happy to see this happen. Why? Because the best money is made when the world seems to come to its end. I hope I will be wise and brave enough so that when the extreme pessimism comes, I will know and be able to jump in with full force. I have been waiting for this moment and I am definitely eager to dancing with it.

So what to do immediately now? Stay calm and be patient. Don't panic and watch your positions. No one knows for sure what will happen immediately in the short term. Either direction is possible.  Before I take any sizable decisions, I want to see a clear trend in place, which takes time to develop.  As I said before, regardless how much a stock plunges, it can drop further lower. Don't try to catch the falling knife. It will hurt you and hurt you badly! It will be stupid to try to pick the exact bottom. You may be lucky once or twice but most often you will be trapped. So let the opportunities come to you, not you to chase them. Of course, it is a different story if you simply want to speculate for some short-term opportunities which look really promising. I may also attempt for that but definitely with small money which I can lose.  

I suggest you read my April 15 blog again entitled "Successful Investing (3): Be Vigilant". I'm sure it will be helpful with respect to how to handle the current dire situation. Most importantly please respect your exit strategy, better with trailing stop or stop loss for your general stocks.  I will be less concerned with the world dominating companies such as Wal-mart, Microsoft, or Intel etc. Personally I will not sell such companies easily as the risk of total failure for such companies is virtually nil. All in all, reserve your cash capital as much as possible and be ready to jump in. Great opportunities are waiting for you ahead and don't miss them when the right moment comes. The worse it goes, the better you may get.