When PSEi 7500 broke down, I closed all my positions and went all cash. Looking back, there are a lot of instances when the market tried to tell me that it really did peaked. When the index went below sma 200, I should've listened. The message became louder when the death cross (sma 50 went below 200 sma) showed itself. I still traded, though smaller in positions, but in the end took some losses. The urge to trade is really hard to resist.
Now, I am currently just watching some stocks and the market, as well as trying to work on improving my system by making some refinements. I really don't mind playing those occasional bounce plays, but it really is not worth it anymore in my opinion.
I even moved some of my cash to other investment vehicles. There are more other ways to make cash work for us aside from equities; it could be real estate, micro-financing or even building real businesses. Money is just a game and the world is your playground.
What keeps me busy right now is working on my system. I'm trying to create a fully systematic trading plan that will help me act fast without any second thoughts. I am focusing more on my entries, position sizing and exit strategy. No system is perfect, that is why I am continually working on mine.
I will wait patiently until the market tells me it's time to get back in the game again. I'm playing the long game, no rush to get in. After all, I am not in the market to get excitement. I'll let the PSEi and the stocks on my watch-list tell me when it's time to rock in roll again.
I will be closely watching the sma 50 and sma 200 of the PSEi.
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