Sunday, October 4, 2009

IN STOCKS, THE GOOD WORD IS RATIONAL DISCIPLINE NOT OPTIMISM

IN STOCKS, THE GOOD WORD IS RATIONAL DISCIPLINE NOT OPTIMISM

THERE IS S HUGE DISCONNECT IN THE WORLD OF REALITY AND THE WORLD OF STOCKS.

LIFE IS LIVED AS AN ENDLESS SAGA OF OPTIMISM. BUT, THE STOCK MARKETS HAVE TO BE DEALT WITH RATIONALITY AND DISCIPLINE.

MOST OF THE PEOPLE PUT UP EXPECTATIONS EHICH ARE BASED ON INDIVIDUAL HOPES AND PERCEPTIONS AND POSSIBLY THEIR TRADE POSITIONS TOO. THIS CREATES A BIAS IN THE MINDS OF THE READERS.

STATEMENTS LIKE, I EXPECT THE MARKET TO BE HIGHER / LOWER ON THIS DAY …….. HOLD LITTLE WATER AND SANCTITY, UNLESS BACKED BY TECHNICAL ANALYSIS OR SOME IMPORTANT GOVERNMENT POLICIES, ANNOUNCEMENTS OR CORPORATE RESULTS ARE SLATED TO COME IN.

OTHERWISE, IN THIS MARKET PLEASE DO NOT BE BIASED – NEITHER NEGATIVE NOR POSITIVE. THIS WILL ONLY CLOUD THE JUDGEMENT AND SLACKEN YOUR INSTINCT IN GOING IN FOR THE KILL. REMEMBER, NO ONE CSN TIME THE MARKET TO PERFECTION, BUT IF YOU CAN RIDE THE MOVEMENT 80% OF THE RISE OR FALL, BELIEVE ME IT WILL BE CELEBRATION TIME.

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