Meltdown?

At closing time, I added another 100 lots HSI-HAF (put warrant) into the earlier morning bought 100 lots, making a total of 200 lots averaging RM0.897. Cikgu Teh averaged down at closing time. I followed with risk in mind. Cutloss level calculation.

Emotion? I was very reluctant. I was afraid I most likely need to cutloss for another RM1000 the next day. I had lost just lost RM400 trade today.

Lo and Behold! Few hours later,

Hang Seng Futures is melting!

Whole European and American markets are melting.

S&P500 VIX index is more than 60!

Meltdown. This is no more selldown. Cikgu Teh gave the third e-meeting in this week alone. He taught what we should do if we are stucked in KLSE market.

We are taught not to average down in a meltdown. Sell when market rebound. If we cannot take action, we might as well quit the market for good.