Contrarian

Today the ASX fell a lot and then slowly recovered some. Many people, especially those paid lots of money by investors in large funds, would sell. But would the fact that China raised its interest rate makes that huge a difference within one day? China still needs a huge amount of raw material to bring its nation to Western standard.

I must be one of the few buyers. It is a perk of a small investor to be able to indulge in contrarian activity. You used to be able to do shadow buying or selling, without owning any shares. In the long run, it is better to ban naked trading. I don't believe in CFD or naked trading. And I hate those big funds that borrow shares to trade because you don't know that they are just manipulating the market.

I nearly did some clothed trading today but I backed out. Why? Because hardly anyone is selling GTE. So if I sell, I won't be able to buy at a low price. I have no idea why GTE has gone up so much today when there is no announcement. That was why I thought of selling some GTE shares. I know of at least one of my readers who bought GTE when it was in the low 30's. I topped up when it went a lot lower. So presumably, he must felt lousy when it first went down by more than 20%. When I buy, if the share price falls further, quite often I buy some more because the reason for buying is the same and even more desirable!