Wednesday, April 6, 2016

Fear and Greed - VRX and KMI

VRX was in deep trouble lately, stock drop from the heights of over $200 to about $30.  But there is a light at the end of the tunnel now, still risky, so I do the thing I distain, day trade on it.  I bought about $290 and sold at $330 within two days. Probably sold too early, but I have to resist the greed.

Bought KMI again today with the news the oil inventory is down and oil price is rising after 9 days of dropping.  Bought $500 at $17.19 and sold $17.62.

US Stock market is a bit over priced now. All eyes are waiting for the FED to raise rate in Apr.  In an environment of rate rising, the stock usually don't do well.  We will see.

One of the simple lesson to learn yet so hard to practice is what Buffet does so well "Be fearful when other are greedy, be greedy when other's are fearful".  Started 6 years ago, I start to learn and condition myself to be in the "buying" mood when the stock market drop, and in the "sell" mood when the stock market rise.  And be bold to bet big when I see real opportunity.

May be I should start a fund call "Fear and Greed Fund"

http://money.cnn.com/data/fear-and-greed/

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