Forum Archive Index - February 2002

["Richard Hooper" <hoop@ihug.co.nz>]

  Why is the market falling???

  Probably due to many factors, which unless you understand how they all work and intereact with each other,you should start at the beginning first rather than entering this area in the middle with this question why is the market falling....

 

Lesson 1:

...James... When learning the stockmarket, keep it simple & be emotionless. You will have to broaden your mind & throw away any biases you have in life.

 

1...It is a market, therefore price is dictated buy supply & demand.

2....Humans belong to the animal species, hence they rely heavy on animal instincts.

3....Herd behaviour is very common...

4....Sometimes there is not logic..Due to herd behaviour a great stock may get oversold for no reason, a poor stock may be rocketing up in price for no reason ...stampedes could happen even for no reason, and stocks ignored for no reason.

5...Having a Business Degree gives you no guarantees to make money on the market because of social influences.

6...Having a psychology degree gives you no guarantee to make money either because of the business factor

7...Having both degrees is a recipe for disaster as one would think too hard and screw things up totally.

8...Advice.......Don't buy a crystal ball

                        Don't look in the rear vision mirror while travelling forwards ( history may not repeat itself)

                        Don't act on what you read in the newspapers (too late)

                        If people are taking about a stock it's(too late).

                        Analysts get it wrong often ,,and sometimes they operate a hidden agenda.

                        Trust funds gives a salaries to one or many people who the investor never sees. If that investor saw some of these people, they might not let them babysit their dog  less alone trust them with their life's savings.(ask the question, would you let this man go out with your daughter?)

                        WISDOM is a great asset....James unfortunately this grows with age..unless you have acquired it as a natural gift ( I developed wisdom at a young age.useless at the time....still capable of doing stupid things..probably more so than others) To help develop wisdom, associate and talk lots to the elderly people and relate to them and their experiences. 

                       

                        Don't always believe what you read on sharechat.......dammmmn....there goes my post here....oh dear..

 

Happy learning

Hoop

 

----- Original Message -----

From: james.goodman

To: sharechat@sharechat.co.nz

Sent: Friday, February 22, 2002 12:41 PM

Subject: [sharechat] why is the price falling

This was a question I asked, it didnt have to be answered but insted of getting in to detail I asked the question to see if anyone had any idears (maby some inside info or something else ) or maby they could direct me to something else (as they did) to help me which I apprecaite, as I am only learning on where to find what I am looking for on here by reading what other people say so I can search for it and read up on it.

 

I think you should take the post for what it is "A general question." There is allways alot of answers for a general question. 

 

PS I am only 19 and just getting into this side of things there is allways alot to learn