Saturday, August 28, 2010

The market is always mysterious

At times when you think you can't possibly lose, you probably blow up. It never pays to be overconfident.

In a horse race, it is not unusual for the most fancied runner to come in last. Do you know why? The simple answer is: The horse was doped; it was planned to fail.

In the stock market, you probably have heard of Pump and Dump. This means that a stock is pushed up to an unreasonably high level for the purpose of distribution. If you are not careful, you could be tricked to go in while smart money is going out. Think twice before you act. Common sense is the key.

The big boys know that you are looking at your charts to track them. So they use red herrings to mislead you. That's why we have false breakouts and breakdowns. Hence, the difficulty to read charts accurately. If you have been experiencing with charts, you will probably agree with me. Therefore whenever I make a mistake, don't make a mockery of the issue. After all, to err is human. Besides, only infants expect to score all the time.

I don't claim that I am an expert in chart reading. Neither do I have a crystal ball. What I post here are my opinions. If you choose to follow them, remember it 's your decision to do so.

If you lose money, don't blame me. If you make money, don't share them with me.

Constructive comments are always welcome. Profanity, sarcastic remarks, irritable phrases without respect for others, and mentioning of other blogs with intention to incite hatred, will be considered as undesirables and will not be published.