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Archived on: 6/25/2017 10:00:00 AM
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[–] AnmanIndustries ago
Everything you have said is a normal part of trading on the market. It is a normal part of the economy cycle. When the economy leaks bleak, or material prices falls, or dollars devalue, you lose money. You buy when over sold and sell when over bought. The moment its the opposite for 90% of the people in the market its Armageddon and everything is over. This is not true. Every one just made a bad trade at the same time. When every one realises they have made a bad trade at the same time and they all try to sell, you get a crash.
I couldnt find the stats I stumbled upon a while ago (but I didnt look hard), but the percentage of trades by retails vs institutions is pretty out there. When retailers start pulling out of the market you should too. While Im just having a guess here, maybe 30% of retailers are regular traders, such as myself and the rest are hit and miss families trying to do something other than earn interest via cash in the back. Retailers are small and lightweigt and react faster than institutions and algorithms. Sometimes the institutions use this to their advantage by triggering stops and play on hype, but in the case when the retailers disappear, you need to think a bit more about why.
Which is the point of the article I guess. But my point is that the market is not over. Its not Armageddon and these patterns have happened hundreds if not thousands of times before and all zerohedge every have to say it THE END IS NEAR. Every friggen week for years now. I actually look forward to the next collapse. Hope to score some good deals.
[–] [deleted] ago
[–] AnmanIndustries ago
Collapse sounds like its over. Civilisations collapse.
But I do like "They're saying the herd is out of chairs." A market that exists of institutions trading against institutions is like playing a game of Capitalism 2 and just playing as a stock trader. Computers fighting computers and you tossing a weighted coin.