A WORD FOR THE FUTURE STOCK TRADERS

MAJOR STOCK MARKET ARE EXHAUSTED. WHAT'S NEXT?

STOCKHACKER
Publish date: Mon, 29 Sep 2014, 08:14 PM
A personal opinion in stock trading

Hi friends and readers, 

Exhausted from the stock market volatility recently?  As mentioned earlier, the stock market has reached "permanently high plateau." Nobody knows when and how it ends, wish all of my circle of friends know what is possible and impossible and practice price discipline to avoid being stressed out.

CENTRAL BANKS INTERVENTION . 

Those arguing that Central Banks and their proxies can control and maneuvered the stock market for the past few years as evidence.

Those of us can see the heavy handed control as increasing the risk of unpredictable instability have no system analysis model that can pinpoint the dissolution of Central Bank controlled stability. As a result, we seem to be waiting for something that may never happen. 

Despite its inability to predict a date for the collapse of stability, we still see system analysis as providing the most accurate and comprehensive model of how complex systems function in the region and the real world.

If economy and the market are indeed systems than we can predict any level of control will fail, no matter how extreme, and it will fail in an unpredictable fashion that is unrelated to the power of their control mechanism.

Indeed, we can posit that the apparent fashion of central bank engineered stability and volatility and an ever rising market, will set up a crash/ severe volatility that will surprise everyone who is confident that the central bank mono-cultures never crash. In the real world, manipulated stability is so vulnerable to cascading collapse that crashes are probably inevitable. 

WHY ANOTHER YEAR AND NOT NOW? 

Then, why not crash now?  After all, all the great news is known and priced in, and all the bad news has been fully discounted. The volatility is beginning to show. Why shouldn't world stock market crash big and crash hard not in another one year but soon?

We all know that, market crash are not from bad news, but from the exhaustion of temporary stability. The longer that temporary stability is maintained by manipulation, the greater the severity of the resulting crash. 

RIGGED.

Do you trust that the Central Bank can able to control this great mispriced market? Do you want to know the many many and many  (US $) "trillions" of mispriced fix / capital assets and equities in the world was wiped off and puff!.."it vanished" a few years ago? Where did it go? Who is the culprit? The casualties is who? 

This is what the status quo everywhere is optimised for protecting those who have secured wealth, perquisites and power of strangling competition, social mobility and democracy.

TRUST BUT VERIFY.

We can find our definition of true value, if we are determined . How to define a true value? How it is determined? The stock market is nothing more than a big great auction place. Sure, there are lots of guidelines and rule of thumb by establishing a company's value. But that's just it. They are just guidelines. At the end, every investor will choose on their own merits on valuation. 

Trust but verify the due diligence, this may avoid so much of the frustration. I have been trapped before and so when it was obvious, I have to delegate or " down-ed". In all cases a simple few stages of verification along the way would have prevented everything severe. 

You could get mad at them, but really it would be our fault for not building our verification step into the plan.

As mentioned before: "Don't think it won't happen, just because it hasn't happened yet"


Invest with extreme caution and attention. Most importantly your well being  ~~

 

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2 people like this. Showing 1 of 1 comments

Kevin Wong

All bull runs end only when ""the last buyer has bought"".

2014-09-30 08:23

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