BELIEVE in the POWER of CONTRARIAN Thinking!

Know when the Market is in a state of EUPHORIA or HYSTERIA     

Whenever majority of the market participants starts to flee away from a massive 'Market Sell-off' in global magnitude, know that the contagion of a rapid decline would not last longer than the time it took prices to reach its peak. As the global rout have been magnified due to modern technology in trading algorithm that adds up to a fast paced market activity. The past trading days were classic examples of exceptional times in the financial markets .

Thus, experience plays a greater role in trading where risk averse market participants would have some difficulty in 'ADAPTING FAST ENOUGH' in certain market conditions especially in a rapidly declining or even an accelerating price trend. When this happens the market would simply leave them behind to mend for themselves and would regret not being able to take action when it needed the most attention. 

However, it provides tactical investors and seasoned traders the ability to outmaneuver the market at its own game. Knowing how and when to apply these methods by having access to the different market strategies available through 'ARBITRAGE TRADING' can do more good for these clients other than themselves and be thankful for an outstanding job well done.

Although, to be able to carry a higher degree of trading confidence in various markets, it would take a greater understanding of how all these works which would entail the appropriate amount of funds to do so with precision trade execution. The end result would be based on the due diligence made and well disciplined enough to follow the exact plan of action even before execution of the trades. Allowing to adapt at any given time when market conditions change should always be considered.

Always expect the unexpected and should have an array of trading solutions ahead of time. However, what good is a plan of action if and when it is not properly executed. Due to the fact that the market has moved or simply 'inaction' even when it has been anticipated. Stay ahead of the market by being aware of next major event and filter out external factors that may only seem to provide a misdirection. This is where the contrarian approach plays a significant role of being able to develop a 'Strategist Mindset' while trading volatile markets.

Related Video Information: Effective Analysis & Contrarian Theory 

and the Benefits of a Mentor / Trading Partner

PH Stocks Triple Digit Decline.....

Not Without a Contrarian Move Higher

The triple digit decline of the #PSEI - PH Stock market have been the culminating event where the Energy Development Corporation - #EDC stock prices continued its declined to PHP4.80 from the previous week's high at PHP8.90. This prompted to spill over across the board from the morning and pm session that dragged the PSEI at 8119 low for the day.

#EDC Stock Price with an 'Exclamation Point"

This prompted the Philippine Stock Exchange to replace EDC with Robinsons Retail Holding Inc.- #RRHI by the mid-pm session announcement. Which drove the #RRHI stock price towards a PHP105.00 level high from a starting base price for the week at 91.10. An exceptional move, indeed where a struggle for positioning from the announcement really drove volatility to this particular stock.

#RRHI Stock Price Benefits from #EDC's Decline

The technical break out has been supported with the fundamental  inclusion of RRHI in the main PSE Index as announced by the Philippine Exchange. A run up to 105.00 also allowed some profit taking and position adjustments as the weighted average in the overall index takes place.

Although, there were a few stocks that held through out the bear market sentiments and allowed the PSEI to have relief recovery only to close with an 8170 price mark. The week ending for the 3rd quarter would definitely be volatile. As we made mention, that the PSEI now carries a wider range from a high at 8321 to a low at 8100 for the time being.