Heng Seng Index 20979.24 +511.03 (2.5)%
Shanghai Comp. 4046.39 +24.76 (0.61)%
I read this article today. This looks like a bubble to me. It is hard to tell when a bubble pops until it does. This reminds me of the time when I was in college NYC during second half of 1999. Everyone was talking about stocks in school. People use the lab computers and library computers to check stock quotes. I was putting on trades in the computer lab with my Datek and Ameritrade accounts. I made my first trade in September of 1999. I had a $4k account which ran up to $32k in January of 2000. In the end I gave all of it back and another $6k. I was not hurt too bad.
These people probably do not know what they are getting into right now. When a crash comes it will be ugly.
A 60-year-old cleaning woman in the southwestern city of Chongqing is being feted in the media as a market wizard after doubling her 20,000 yuan ($2,600) investment in two months. "At a time like this, who can lose money?" the newspaper Chongqing Morning Post quoted her as saying.
The Beijing Youth Daily carried a photo of a Buddhist monk opening a trading account last week at a brokerage in the western city of Xi'an.
And many investors believe Chinese leaders will prop up prices to avoid turmoil ahead of a key Communist Party meeting in late 2007 and the Beijing Olympics next year. "We hear that before 2008, the government won't let prices fall," said Ding's sister, Ding Jingxian. "We're not afraid."
- I have been trading for 5 years. It took close to a year before I became profitable. I find that I am improving gradually each year. My method of choice is scalping. My edge lies in tape reading NYSE stocks and staying on the side of the specialist. That is the method I learned when I started. As I build up my capital I will try new styles and trade new markets. In late 2006 my trading hit a rough patch after the introduction of the NYSE Hybrid system. For most of 2007, I have been on a search for new strategies that would help me adapt to the market.