Friday, February 25, 2011

scary difference between developing and developed stock markets!

over the years

i have noticed

one crucial difference

between developing stock markets (india included)

and developed markets (typically uk, us)!

(somehow i always wanted to write about this

but unfortunately i always forgot to)

--

the difference is big

and scary (once u know the repurcussions of the same!)

the difference is

"in recent years underdeveloped or developing stock markets have tended to move more or less in a pattern

while

the developed markets have been moving more or less randomly!!!"

it has serious remifications.

what?

this indicates

that as long as retail trader fraternity is less developed

they can be overpowered

outmanoeuvered

and trapped

by the operators

relatively easily

by using mass-psychology tricks and tools...

but as more and more proportion of the traded money

starts coming from

software-backed trader-units

(as is the case in the developed markets)

it becomes difficult to play the same tricks on them.

this leads the operators

to the next level of powerplay

= ruthless use of money power

how?

random shaking of the market

using raw money or bulk stock dumping!!!

and when and wherever that happens

big money always beats small money!

--

it is near impossible to catch random behaviour

both with technical indicators

as well as

methods based on patterns!!!

and that is going to be the fate of the developing stock markets

sooner or later!

--

i shiver to think

that retail traders will never be allowed to win!

--

mass heist!!!

--

(self talk : we must find guerilla tricks to trade in random movements!)

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