It is the time full of uncertainties in global economies while the market swings its pendulum to extremes. Are you keeping up at night? Do you feel your impulses quicker and quicker? You need to cool down but how? There are road map to stay sane in an insane market time. *** For a month, the global markets shot up and down four times and XAO went madly much more than most of other markets. These roil and uncertainty of markets make the economy in the way we have not seen since 2008. All the turbulence has forced market warriors in stampede and affected their psyches. As always, money and crowd psychology are inextricably affected each other. XAO is skittish to exaggerate any little causes. Fear and panic are the main driving forces to sell, which absolutely would result in irrational-exuberance and burn the money on fire. The collective insanity implies that in addition to crowd psychology, almost everyone has his or her own individual psychological issues with money. In the time stock market crash, 1. some could have too much mortgage payments 2. some could feel the threat to lose the job 3. some could have the loss which are understandable 4. some could work too hard to exaggerate the causes of stress 5. some perhaps have more significant problems with money stem from their own internal issues All could drive people to act irrationally in uncertainty and market turbulence without matter economies will fall into recession or not. *** Have you read any books about the classic money-related pathologies we all should familiar with? Some would say they know them very well but in fact we just know how to talk about them but could not stop them to play the part in our market practice. What are they? What are 1. gambling addiction, 2. overspending, 3. hoarding and How do they affect our behaviors and our behavior affects the economy and market negatively? Do you see 1. you are unable to deal with day to day financial tasks, 2. you jump over fence to get rich quick schemes, 3. your income never could cover your excessive expenses so that you have to overdraw or get excessive debt 4. you could not think important long-term financial issues? All of these addiction and bad behaviors result in too many turn market to be a huge Casino! *** Irrationality with money plays big roles everywhere. 1. unintended messages to the children regarding money. Some youth at 30s with $60,000 yearly salaries, who still live with their parents, find the salaries are too little and they have to get the car loans. 2. social relationship problems arise over insignificant amounts of money. 3. difficulties to manage the money is a big reason for a lot of divorces. The financial crisis is the result that largest financial institutions and regulatory agencies made decisions that were clearly problematic and avoidable. All of us including the nations have the money problems. We have better computers and systems, right? All of institutes or big boys could stop losses but if they spend more than means, who or what could save them? When so many people allow the money issues become survival issues when the market crash somewhere else, XAO could not be stable and since it has got the lessons in GFC it wants to crash quicker and more effectively than anyone else. But the stress is the best teacher to correct the bad behaviors around the money if a man is not idiotic for his life. Bad things are the start for good behavior individually or collectively! Market players would feel the necessities to hold the value with the margin of safety even to most of them they get the lessons too late and they could not get the guts to stay in the market. Too many things they don't have time to sort out before they lose all! Unfortunately new generation doesn't have these kind of lessons. Old generations have got the lessons but they could not go too far or too long in future! So collectively we become wiser but time would wipe away the wisdom and new gambling generation repeat the same mistakes... *** Naturally we need the wild fires: old gone; new comes in; fire on everywhere; sky looks in risk; everything become normal and abnormal regularly in the life cycle of human being. Why Warren Buffett could be so successful? He knew the money issues when he was a kid. Why did I make mistakes at 40s ad 50s? I never thought about the money issues until I needed it to settle my own family down! Actually I really have enough time to think about the money issues just after I quit my job which happened after the GFC. The time to think about the money is too little. 2+2 = 4 is simple but when 2+2....+2+2... needs for calculation day and day, you could be bored and get wrong result times by times. I never thought boring could result money on fire but in the market it did happen. How many people are trapped there since some very small mistakes? I just wanted to wait for a few months to pay less tax legally and then the losses started its snow-ball building process. We need to replace our instinct with intuition based on the life logic and common senses. It should be in each cell of our body and blood; it should let us up right way to correct the small mistakes by using a systematic process based on the direct goals and indirect goals; it should be made in a pleasant way which let us dance to work on it. Do remember if you google for data to support your ideas only, you are stupid. Do remember if you read but don't ponder to know the simple things good enough you would be idiotic; Do remember if you don't realize you could be stupid, you would be stupid! Instinct would make you stupid when the market as a whole becomes hysteric. Never and ever think you could be much more clever than anyone else in money issues. It needs a master mind with the education on something like the art of war! If you like the money but have to work in your office to drill a perfect and very clever holes, you definitely is a market idiot until you update your mind for the market. *** If you have this intuition, you could make the system work for you. If you don't have this intuition, your system would fire backward to hit its only enemy, yourself. It would effectively stop too many people want to hold the resources they don't deserve to hold. Natural laws and rules seems run us very economically! Not matured in money issues in early ages is main reasons for so many genius to lose the shirts always even they have IQ to design the rocket or system... We are designed to be losers financially since resource is scarce. It is gift/curse to be matured early or try to be mature after 50s, which usually is the time to give up or follow the way we get used to. You may make the money but you are abnormal. Life is nor perfect... In life and market, nothing is absolute right or wrong, which are not be accepted when we believe or disbelieve things too much.