Collectively mad? Good!

Discussion in 'Share Investing Strategies, Theories & Education' started by wdongli, 15th Mar, 2011.

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  1. wdongli

    wdongli Well-Known Member

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    It is good always for right risk takers that if the market shows the collectively mad. Why? The market will generate the environment for the market players collectively burn the money on the fire, which has nothing but the effect of all are in discount. What if the moms and dads come back to home see the red in the screen? What if you see this red screen?

    GFC crash is the result of the collective madness. What would the quake bring in? I could not see any other option but the collective madness. If any of the reactors would melt down, the collective madness is unavoidable! What could be the collective madness make? Don't know!

    But I do hope I could buy two of dirty fishes in the storm of the collective madness even though it is not the case now! Who knows? In my life, I never could see the huge chances come out of anything else rather than the collective madness!

    Let's wait and see: collective madness->burning of the money on fire even the toughest bargain hunters do so->all cry for the darker future in darkness->recovery unavoidable->most of the market players lock the loss!-> It is not about the evidence but the life logic and human nature!
     
  2. wdongli

    wdongli Well-Known Member

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    Collective madness is a matter which doesn't happen every day. It needs some external and internal conditions. Once it happens no one could control and stop it until it calm down by itself which is true specially in the market. It is self-enforce process until a break-out point is touched.

    Usually it is bad thing to all but once it happens it is better you use it to open the new opportunities. Do you say it is good to burn the money on the fire? Do you see anyone could stop the mad man to burn the money on the fire? Do you mind to pick up the ashes to check if there are some gems there? Some great things do happen after each of the collective madness by someones. It is great news for ordinary people like me. We don't need to be genius or very clever but we do need the gut at the right time! Could you sense the time right? Yes? You could play the market a few times in your life and make some killing.

    How about me? I just could not sense the time absolutely right which make my genius mind very headache. It is some gift to somebodies but...
     
  3. wdongli

    wdongli Well-Known Member

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    Are you and all fearful?

    It is bad and so bad that anyone has the right to be fearful. Are your fearful? Yes I am but logically I should not! Why? I have enough margin of safety unless the sky is falling down, which is unlikely! I would buy in with my reserve cash if XAO comes down below 3700 again!

    Could I catch the down spikes? Would Japan give up their efforts to build their home? I don't think they would! They now have all of motivation to make their life better! The market would drop down further but would rebounce definitely. The human kind never get the best motivation than any time when they are threatened by the nature. We are great since we are more persistent for better life. It is one life logic and repeat again and again.

    Do you know why China could go so far? It is because the Cultural Revolution and fundamental communism pushed China at the edge of the cliff, death or rebirth. Why did Japan make the great development after completed failure in WWII? Could we grip on the opportunities with the affordable cost?

    Now the question is not about fears but the question is that the herd fearful enough? If enough we should hit out with what we have! If not we have to be patient to see most of the money the traders could burn and would like to burn! It is first mental challenge in the market that you never burn your hard-earned money at all!

    But it is easiest matter in the market to burn the money and if you could stop burning the money you have got 90% probability to win in the market. Don't get the mind! Looking back to GFC and IT bust, which show all of the lessons about it.