A few of my market lessons compacted in one DOCUMENT
free_ebooks.pdf
Contact: thestockcode@gmail.com
If you follow us, you must not be worried by the erratic behaviour of financial markets at the moment, whatever the weights we put on fundamentals of the economy and artefacts of technical analysis. That reason why is explained below. When examining financial markets, they are all very different with non-deterministic behaviour… But, there is one common universal feature that can not be contested: financial markets are never following a quiet path. On the contrary, for all of them, they are either super-exponentially accelerating or crashing. In our education series, we have illustrated this FACT with many graphs… For all of them, we can observe the succession of accelerations followed by crashes. This basic feature stands at the heart for financial markets. This is a central point, and most probably THE central point of the modern aspects of financial markets… Just to give the bottom line of the complete explanations that you can find in our documentation, available on this web site, we can say that financial markets are fed on volatility. In fact, with no volatility, the free markets would not exist: both are intrinsically related. In order to generate some volatility, there is a need for bubbles and anti-bubbles (or crashes) with a periodic wave. Financial markets need to generate such extremes… Remember the famous history of the tulip bubble 400 years ago! In a certain way, this general behaviour is largely independent of a precise trigger or catalyst that gives the turning point of the extreme towards another direction. Then, the game is very simple: one needs to catch the train and to jump off before it explodes! We know this game! And we can play it by limiting the risks at the lowest levels…
This entry was posted
on Saturday, July 5th, 2008 at 1:31 pm and is filed under Commodities, Debrief, Forex, Stock Code Trading, Trading News, US Markets, non-US Markets.
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