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Trading Are you sure it would happen again?

Discussion in 'Shares' started by wdongli, 17th Dec, 2010.

  1. wdongli

    wdongli Well-Known Member

    Joined:
    31st Mar, 2010
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    1,292
    Location:
    Perth
    Could it happen again to AXM as shown in the following chart?

    [​IMG]

    No one could be sure but who could be sure before March 2006 AXM just shot up not too long after? One thing needs to be sure for any AXM shareholders, that you could not be trapped there if it goes nowhere.

    I do feel it is quite likely to shoot up as shown above. Since it just has two options, dying or reborn, based on the chart below. It is very risky but also very rewarded within your affordability in worst case.

    Just wonder if the bad black swan could hit all onto the ground in GFC why couldn't we use the good black swan to shoot our fishes into the sky. Too risky? Yes but could we mitigate the risks to the level we could deal with?

    Could we invert ourselves from best case to the worst and worst to the best before we could find a way or pattern which work for us?

    [​IMG]
     
  2. wdongli

    wdongli Well-Known Member

    Joined:
    31st Mar, 2010
    Posts:
    1,292
    Location:
    Perth
    AXM: we just want to buy low and sell high

    Someone, who believes buying low and selling high, said "Any formal training is going to cloud your judgment because when you don't agree with what you have been taught you will be torn." It sounds you hit one bad side of one thing with the good side of another thing!

    Trading and Chart themselves are innocent as a hammer. Trading itself could not result in just one option that you would be confused and then you would turn yourselves as gamblers. You could use hammer to hit the nail for your new houses for efficiency and effectiveness or you could feel everything is nail and need you to hit or you just use your good hands to push the nail into the place you want.

    Training is necessary to use a hammer properly. Education is necessary for good mind. Logic and senses are the basic only which need more knowledge to get the context to use. Good logic need good facilities to find the place to use. You could not fly without airplane to US, but you could not drive it to your office everyday, which we just could not afford.

    You want to fly and then you have to learn how to drive the airplane. Logic and common senses only could not send accumulate enough to let you fly!

    More thought in http://www.invested.com.au/blogs/wdongli/
     
    Last edited by a moderator: 17th Dec, 2010