Hi Nectar - exactly. This is the sort of thing that GJ was talking about re trading.
By the way, human nature is fascinating and I try to learn something everyday. We are very "herdish" and shift from greed, optimism and euphoria to dissapointment, fear and capitulation - probably driven by a passionless broking house that sees some volume dry up, overextension and wont get sacked for making a nice profit. (Both up and down).
People like Gann and Elliot understood this - but also the natural fractals that govern psychology and the balance of those in profit and loss. When things wash out, the fundamentals take over and we will do this all over again (you can count on it) as we move up the tree.
This is why it is very difficult to hang in great stocks. No one likes to see paper profits decline. Me either. However, I try to see my future blue chips more like property investments. Have a look at Sandfire, Fortescue - etc... and you will find many instances like the last week for SDL.
If you are an investor - then either you "believe" unless proved wrong fundamentally, or you are a trader and act on signals.
We are very predictable emotionally and this will be the demon that you either ignore or let get the better of you.
Here is the dilemma. Using TA I get a lot of trades right. I also get some wrong and they tend to be the expect the unexpected ones where I tried to outsmart myself. Much left on the table as you hand pass your stress relief to the next opportunist.
My guess is that we saw "capitulation" today, and that has a stabilising force. If you trust that we are in good hands with GJ as I do, then there is no need to worry. We will see 6 and 4 cent upswing days soon - you can bet on it.
SDL Price at posting:
46.0¢ Sentiment: ST Buy Disclosure: Held
