Now you should know why the share market normally bull for 3.5 days and soften 1.5 days in a trading week. Some people said it's correction, some people said it's profit taking, and some people said other reasons. From my opinion, it's the effect of T+3 profit taking.
Well, today we are not talking about T+3, we talk about profit taking. We should know that a good trader or investor should possess the skill and courage to exit, rather than enter a share. Yes, indeed everyone know how to entry, be it in a new low, new high, price correction or any circumstance, as there is no right or wrong. But to exit, it is a lot harder than entry. It's about the strategy you apply.
It is true that taking profit is a lot safer than unrealized profit.
Some intra-days traders like to enter and exit within days. Mid/long term traders would be lasting for months to years. In fact, I'm not sure which strategy is good, as they have pros and cons. But I found out a strategy works for me at least at this moment, as I don't really have time to look at the market daily. I've problem study the outlook for the market weekly as well. Furthermore, I can save up the broker fees from in and out the shares frequently.
What I learn from the market is that, as long as bull run doesn't come to the end, we don't really have to take our profit if the industry and country outlook is still positive. We should increase our position in fact! Unless the share is not performing, it's kind of troublesome and wasting time of keep re-enter and re-exit the same share. Most importantly, we don't want to see the share going up after we take the profit. Don't you think so?
Of course, no strategy is perfect. Our accumulated profit can be easily wiped out in a sudden if any incident happen, such as 911 attack.
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