Drop in the Market

[leminus2]

Anybody know why the market just dropped, I wasn't aware of any upcoming news?

[reyden]

News out on Bloombergs: BNP says SA may impose tax on foreign-capital inflows

[SimonPB]

nah was global drop .. chhina raised the bank reserve requuirements another 50 points ..

[#4]

Zi Germans... Germany Stagnates unexpectedly

[SimonPB]

an here's the point .. news means nothing, this wasn't expected .. all you can do is trade the price ..

[#6]

yip...and often there seems to be an over reaction to bad news.

[#7]

I get the feeling that every time the market rises at the moment is just another selling opportunity and the bears are in control.

[leminus2]

what sites do you guys use to get this news?

[Big_Bucks]

It's amazing how the market just looks for an excuse to react and the reaction is always overdone, I enjoy them as it give me opportunity to pick up bargains and sell off the minute sanity prevails, OMO, you be the judge

[Wizard]

why don't u just write a book "Trade the price"

[HateGauteng]

Looks like the average boring profit taking pattern. There's been a few up days overseas and profits are being taken. Doubt its anything serious.

[Mr_Money]

Maybe its Friday.... Just kidding

[SimonPB]

writing another book .. then I write the trade the price book .. but it'll be only 8 pages, 1 page for title, 3 for legal stuff .. 1 for the theory, trade the price .. and then 3 blank pages at the end for notes ..

[SimonPB]

an trade the price comes back to .. market was falling, why does one care why it was falling .. if youu havve an entry (which I did), then shhort it .. wait for the exit and exit .. worryign abouut why, trying to find out why, etc .. this onlyy wastes time and more importantly matters not .. there was 150-200 points on the ALSI up for grabs, whho cares why it was there, only thing that metters was that it was there ..

[#15]

That's correct - like simon says trade the price and remember the trend is your friend!

[sponono]

I could not have said it better.

[kwagga]

This drop was expected as most cover their risk before the weekend by taking profit in a choppy market.

[#18]

150-200 Up for grabs? What, yes on Fridays people take profit, but it has not caused a swing as bad as this on a Friday. Are you telling me that this morning you got out of bed and just thought that today, not Monday or Tuesday, today the market will drop by 150-200? Come on! Something triggered the drop. What was it?

[sponono]

It does not matter what triggered the drop. The fact that the drop happened is why enough. Infact even if we know why the drop happened, as traders we have to worry about WHAT (the drop happened) and not WHY. How many times has something happened in the market and you find out latter why it happened: by the time you find out the opportunity to trade has already passed you by. TRADE THE CHART PATTERN AND NOT THE REASON WHY IT HAPPENS.

[#20]

Are you telling me that the chart pattern showed you a 200 point drop for today? Not a 10 or 20 but a 200 point drop? Come on.