Over the weekend, one had a long chat with my Daoist friend. After a brief discussion on Zhong LiQuan and neidan, I asked if he had made money this round in the KLSE. Some gains and losses, he replied.
We went on to discuss about luck. How he seemed to have sold out too early on various shares that later went sky high. He had recently devised a chart based on the five ‘elements’ – metal, wood, water, fire and earth – that just needed some fine tuning for it to work well in line with the stock market.
He enquired if I was using a past year’ Yi chart for 2007 and said that past track records of the KLSE performance may change. I assured him that the Yi chart is made for 2007; it has been indirectly confirmed by his ancestor master and just the other day, directly confirmed by none other than my teacher, the Yi! (That is for another story.)
My Daoist friend then revealed that he had sold his investments one day later than my stock clearance on or before Friday, March 2. I can understand his pain and those of others who hopefully waited for a rebound after the February 27 plunge. They had wanted to recover some losses or much of the paper gains seen prior to that plunge. However, those who waited lost another thirty percent more on their investments during the following Monday, March 5 rout, and as I understand it, quite a number who bought heavily through margin financing or 'longed' the Index Futures the week before, lost their fortunes.
The ‘one day late’ phenomena had caused me to lose out on hundreds of thousands worth of profits back in 1995. Instead of following the annual Yi chart, one had waited for an important announcement by the then Prime Minister. A lesson well learned. Therefore whenever the time is ripe, I wait for no one or any announcements to take profits. (Remember, while not a rabbit, I am easily frightened!) Just like the profit taking a few days before the April 19 plunge.
Why wait for one more day until the wisp of smoke disappear with your profits? In a Bull Run, it is not wrong to trade. Buy low; sell high is the key to successful trading. Much money is made if you can get into the right timing mode. There is a time to buy and/or hold and a time to take profits. You do not have to believe me, just ask the Yi.