This weeks trading of Myer (ASX:MYR) contained many lessons for...

This weeks trading of Myer (ASX:MYR) contained many lessons for both new and experienced traders.
On Wednesday it was all doom and gloom as the Company announced to the market that they had lost nearly $500 Million or Half a Billion.  The market punished MYR on this day of reckoning with nearly 5% wiped off the Company's Valuation at the end of the trading day.

The media went into a frenzy with headlines painting a picture of a rather bloodied and disastrous result.....



.....and so the headlines sang such a sad song that day.

However was it really that bad, or did the result create a significant trading opportunity to go Long as a Contrarian Play? I do not think there were many retail investors (myself included) whom would have backed in going long in Myer Stock the next day. I did not think that even short sellers would be closing out their positions that day either.

So here is a snap shot taken during Thursdays trading, the day after Myer released that dire result to the market................Congratualtions also to @LOOKCAREFULLY whose comments are shown in the post below as well. That poster was spot on. It was worth looking at yesterdays detailed report as that poster insightfully suggested.....


What a complete 180 the media did, with headlines such as this being printed the next day....


Here is what the Myer daily chart looked like during Thursdays stunning turnaround in trading, with Bulls coming from everywhere to buy up stock that pushed the share price up 35% on roughly 6% of the total number of issued shares. It was a remarkable day.



Below are some of the reminders and lessons that I took away from these couple of trading days.....

1. Be wary of the media. It is a tool that Smart Money use to achieve their own agenda, and they do use it well.
2. Be an independent thinker
3. Be bold and brave and always be prepared to back in your own judgement
4. Sometimes it may seem ludicrous to go against the grain, however it can reap significant rewards
5. Look for any clues prior to Half yearly and even quarterly results so when they are released to the market you are ahead of the pack
6. Be wary of market noise
7. Often these opportunities can happen without many noticing, that is except for the Smart Money
8. It often pays to follow the Smart Money
9. Be prepared to be wrong, but be ready and willing to do a fast 180 in order to take advantage of any opportunities that may come your way

Cheers
GF