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Re: Counter Currents (China) Aalan88  07-07-2008, 10:09 PM | Post #2536658
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erryl:

Aalan- 

There has been quite a large selloff in Chinese stocks this year.  Have you seen any signs of it turning around yet?  Other than SOHU, I think that all the funds you mention are down recently and YTD.  What kind of liquidity do you have with these Chinese stocks?  Can you use limit orders and stop losses with them?

Erryl, I wish that we were speaking face-to-face so I could savor the sentiment behind your question. I'm getting a Yoda-like "concern that the grasshopper is about to tangle his legs trying to jump too far" sort of feeling. 8-) I appreciate the concern.

I'm certainly not any kind of great market timer, but I made some effort. I looked at each chart, and saw a plausible entry point. For example, LDK looks like it tested an earlier support level in the last few days, and is holding up. I could be wrong. But if they are good businesses and can rise above the issues pressuring the China market generally, it should be good. 

I buy through Schwab, so I can place limit and stop (and even stop-limit) orders. But I'm not sure if that really helps. It's fine to protect against a catastrophic drop; but what do you do when stock prices erode by 1% every few days? Just wait for the turnaround, I think.

Of course, if you know how to identify the bottom, that's much better. Anybody?

--Aalan 

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