I partially stepped out of current bull trend bit too early and missed some. And now I am watching the market to jump in. But the market is like a crazy and getting higher everyday.

So I am kind of in the dilemma everyday whether to jump in the market or not. But I decided to hold once again. But, I will have to fight with myself not to jump in.

Here is a good reading from BillCara.com Blog.

Markets cheered the Bank of England decision and the relatively upbeat US unemployment report, bourses around the world rallying briskly, as traders concluded the worst of the recession is behind us. Regardless of your market opinion, there was plenty to support your argument.

What to like about the market:
• Since the March low the markets have been making higher highs and higher lows, the definition of an uptrend.
• Solid leadership with technology leading the initial advance, industrial and financials taking the baton, handing off to consumer discretionary.
• Impressive breadth with the advance decline line consistently registering higher highs.
• The market has done nothing wrong, Bears having fumbled the ball each time they had a chance to send the market cascading lower.
• Companies have had little trouble beating lowered expectations
• Interest rates have remained low, with fixed income securities providing little competition for investor funds.
• The government has helped banks rebuild their balance sheets, keeping borrowing costs for financial institutions very low, allowing them to make money on the interest rate spreads.
• Lots of liquidity is sloshing around the system looking for a home, some of which is finding its way into equity markets.

Reasons to expect an imminent decline:
• The rate of deterioration may be slowing, but fundamentals are not conducive to a sustainable recovery.
• Climax runs do not end well; healthy markets take two steps forward, one step back a natural rhythm re-energizing the prevailing trend over time.
• The S&P (+1.34%) has reached the .382 retracement of the Bear market, a natural place for a pullback or termination of trend.
• Put call ratios show excessive optimism, as do assorted polls of investor sentiment.
• The Bear market low of 666 was the lowest low seen for many years; an up, down up sequence is needed to prove a bottom is in. Thus far only an up leg has been recorded.
• Goldman Sachs (GS –1.88%) a leader hit a yearly high yesterday, reversed sharply, and finished extremely weak today. When early leaders fail to participate in a trend, the move is near a reversal.
• Semiconductors (SMH –0.24%) were weak again today. Another stalwart rolling over.

Trading for a living is a humbling occupation; even the best traders make many mistakes each and every day. We have obviously been too cautious the past few weeks having missed out on several opportunities. Note to self-it’s going to happen again, just part of the game, no matter how skilled or prepared you are. Knowing it is part of the game really doesn’t make it any easier since competitive people want to succeed, and aren’t happy under-achieving.

There is plenty of money in the stock market. However, not everyone can get the money from there. Some people may get a lot from the stock market but has lost about a lot of money there. It ‘very indecisive. Sometimes, then, is the loss of money, but after a few days, you can earn a profit and sometimes reversed. So, how should we do to get the money from the bag? Usually, there are two ways to obtain money from the bag, which are investing and trading. The difference between trade and investment is trading involves buying and selling of shares or future option, within a short period of time, and investing is buying shares or future option and hold it for a period rather long, usually one or more years before selling it.

What is the difference between the parties, the future and option? What we do know is that it is much cheaper than the share and future, it is usually ten times lower than the price. So if you have a sum of money that enough for you to buy 100 shares, you can use this sum of money to buy the 1000 option. And the return on investment is almost the same option, and between the parties. Therefore, they earn about ten times if you buy the option, rather than share or future. However, the disadvantage is that if you lose on the trade that you lose as much as tenfold. When the option trade, the amount of money you can make a profit and losing is almost as if you were trading shares. However, we need a lot of money to buy shares than to buy the option. This means that the percentage of profit and loss account for the purchase of an option is much more than parties. The example is like when you buy $ 10 for a unity of action and $ 1 for one unit of option. When the price drops to $ 0.10, the percentage reduction for the purchase of shares is 1%, but the option to purchase, the percentage of loss is 10%. That ’s why the percentage of profit and loss account for the purchase of options is huge compared to buy shares even if the price fluctuates in a small amount.