Down, Down, Down ! As seen from the STI Chart above, it dropped from 2544 to 2411 since Monday. Thats why i prefer to take a short break.Recently SGX has imposed a penalty for any 'shorted trades' resulting in SGX performing a 'Buy-In' process to cover the short trade. The penalty will be 5% of the value of the failed trade subject to a minimum of $1,000. As such intraday traders have to be more cautious to prevent the short sold position not covered on the same day.
During the correction period, it is not advisable to park big sum of capital in the equity market for long, Not till sti drop below 2000. Bear in mind that we still have a long way to fight with the bear market.
For those die hard traders perhaps there are some investment instruments such as Money Margin is one alternative way which allows both 'Long' and 'Short' positions. This instrument can leverage higher profit return during trade. One of my recommendation is CFD from POEM.
However, in this volatile market situation, only well discipline and experience traders are able to win the game.
Have a nice weekend !
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