ADR Tends to Follow its Home Market and the World Financial Markets Tend to Echo Each Other

I have know for long that the world financial markets tend to echoing each other and ADR issues have the tendency following its home market performance but I hardly pay attention how much the world market went up yesterday.

I just found out that China and Hong Kong index went up almost 4% yesterday. Japan went up 1.63%. Most Europe market went up 3% yesterday. For Baidu which is a high beta stock usually the percentage it went up or down will be bigger then the index. In fact its change is usually two times of the Nasdaq or its home market.

So I don’t understand why I took a short position this morning when the market was up only 100 point (DIJ). That was 1.3% only. And I don’t understand why I took the short position on Bidu when it was up only $9 which is 3.5%.

First I was wrong on taking short position. Second I was wrong on taking the short position before the market running out of its potential today. Third I was wrong on taking the short position on Bidu and fourth I was wrong on breaking two of my guidelines. I didn’t think twice the probability of a better entry point. I have doubled my initial bet of on a trading day.

What a messy day. Should I take lost right now?