Newbie's Blog (21 Dec 23): Market Pull Back

Jo Tan
2023-12-21

There was a pull back last night, after the "Christmas Rally". The S&P fell 1.47% while the NASDAQ fell 1.5%. $NIO Inc.(NIO)$  having grown by 10% in the last few days fell below $8 again. There was a lot of speculation that the market was now optimistic and the market would be green. 

To be honest, I wouldn't look too much into the daily ups and downs and while I would like to say I didn't react much during the short lived rally, I did suffer a bit of FOMO with Nio. However, unlike the previous year, I reacted "less". To be clear, I broke my rule of not buying during a rally or while the stock is green and I laughed at myself because I deserved it.

Ironically, my behaviour and perspective reminds me very much of Jesse Livermore, the renowned trader, who often analysed his actions, especially so when he made a loss. He criticised himself when he made wrong moves and endeavoured to improve. Of course, he started before his twenties and had a lot of time to learn from his mistakes in bucket shops and subsequently trading shops. He also lost and gained millions in short spans of time. While we (or I suppose most of us) don't have that luxury, I feel that we should continually learn whenever we make mistakes.

Looking forward to 2024, I will continue to build my portfolio. When the market is green, I've learnt its an opportunity to sell (not buy!) and since the pull back where the market is red, its an opportunity to buy of course! 

That being said, I constantly remind myself that I'm looking at the long term. A part of me reminds myself that there are a few short term spikes to possibly look forward to, such as:

1. Last quarter of the year where companies announce their total earnings

2. Possible end to wars in 2024 (or maybe not, but we can all hope, right, now that Covid-19 is more surpressed).

3. Larger proliferation of EV technology and vehicles into everyday life. This is also accompanied by the green/sustainability wave of ESG stocks.

Somany things to look forward to and re-strategise my portfolio for before heralding 2024!


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