6 September 2014
Think Things Got More Things! Moses’ Stock Analysis
Welcome to Moses’ Stock Analysis at AmiBrokerAcademy.com. Thank you for dropped by the site. One of the reasons you are here may because you want to know who moves my stocks.
While you are here you also learn from some of the topic discuss here! Don’t just simply believe everything said here, think and contemplate. You will realise that “think, (and) think (you will have) more things (to worry)! Have fun!
Lesson
Think Things Got More Things!
Chart worth a thousand words! There are many things behind the price action chart. Every bar consists of many investors, traders emotions and psychology.
The (stock) market (economy) crashes is not overnight “effort”. Effort is a positive contribution, however it is not here. Like an English idiom say, “Rome wasn’t not built in a day”. There are many factors behind to drive the market to crash. Never be one, because it is a domino effect. When the weakest link can’t hold the pressure any longer and broken down, it will be like ripples effect, the problem will never be the center of the issue, but the entire market.
In fact, no one will wish the market to dive, in contraction everyone wishes the market (economy) to go up and up. But, anything that goes up will one day come down. Sorry, no one have proved the market is related to center of gravity, only we live in the world that see this phenomena all the time.
If you look back we will see the number of crashes to-date; to name a few most recent one, we can easily recall, the 2008 recession, and the one before 2008 is 1998 recession. And after each crash we will try to stand up again. It may take a year, or number of years. At the end, we always declare the market has recovered. However, if you will look deeper, the market is no longer the same after the ‘recovered’. Why not the same? Very simple, the players are different.
Let’s look at the chart (chart worth a thousand words) and contemplate. Why the market is like that.
Let’s use Straits Times Index, STI for illustration. We will see the STI rushed up just before the crash. Why? After crashed, some time quickly return. Why? But, some time no longer the same height. Why? Some will take longer time to return to the same level. Why?
20 Years Data, Straits Times Index, STI Weekly Chart. 1998, 2008 Great Recession.
Why just before the crash the market will rapidly spike up? Same goes to the company. It is worth to contemplate. One simple reason is it lack of capable people to manage at that new level. Another reason, the price action or index spike was a totally illusion; everyone do not want to miss the opportunity, hope buy high and expect to sell higher. The true was the values have been inflated too high. Just like the property price in many countries. …
In stock market, there is a myth and believe, sell on good news.
Thanks for visiting the site, AmiBrokerAcademy.com.
Moses
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