Bad and very bad even bargain hunters cry! Australia stock market has been in consolidation for nearly two years. The bull and bear both are not strong enough to lead the market. No leader in a war mean all of warriors in the war would have to look after themselves and the crowd could not do much and the war continue. It has driven all of defeated but hopeful warriors in depression into the sideline. Most of market players, who have guts to act actively in the market are some sort of bargain hunters with the hopes to buy extremely cheap. As any human hopes, the extreme cheapness has its catches too. The consolidation has last too long and a lot of bargain hunters have seen their capital in unsustainable loss and the paper profit if they had, turned into paper. It is not happy time but gut crunching for the bargain hunters. Actually they have cried and failed to figure out what happen. I am one of them. Things in the market are really bad and very bad. It was surprising and shocking! No too many bargain hunters have experiences of this kind of war situation since most of them. The resource boom is still there but the market just has being grind over in a consolidation channel to consume any resources that bargain hunters dare to put in. You could hope but the despair has been enlarged when you thought it has diminished greatly and then the profit and capital just were lost. No too many bargain hunters buy for their strategic goals but hope to pick up gems for quick money. They don't have the cash reserves for hold once the losses are there. No one could sustain the grinding pressure from both of bull and bear if they just run in the market. I overlook the cruelty and duration of this consolidation, which is not because Australia economies are in crash but the worries and the collective despair for quick money. I know the importance of a safe corner in the depressed market but I failed to keep enough cash reserve in my corner. It was surprising and shocking, which means the failure to be self- and environment-awareness. It is a failure to know I have to know in the market. I have to take my personal responsibility and have to work hard how to get the consequences less significant without letting the grinding eat my gut and the passion to continue my mind updating. The feeling is bad and I have to consolidate my position and figure out plan to deal with the consequences! A war of attrition to consume the bargain hunters http://wdongli.files.wordpress.com/2011/06/share_price_movements.jpg is the link for XAO 100 year price movement. The market would be the war place for attrition of the bargain hunters who don't have safe corners as shown in the picture above in the last one hundred years. The history never repeat itself simply but human sentiment would be similar based on what they feel the present reality and future prospective. IT bust and GFC are the years to reckon the exuberance of irrationality and it should follow the war of attrition logically, in hinder sight and retrospect. Unfortunately I didn't get this message from these picture I regularly to read and ponder! It is clear and obvious now that no one could win in the grinding of bull and bear. There are reasons you could have hopes but you have to move just around the corner to survive first and get the chances second. You could not run in the way when the grinders chase after you! It is a war of attribution in the market! Bear and bull have lost too many warriors and they are changing the strategy to attract the short-sight bargain hunters to consume them. So if despair is too strong, some good news would issue intentionally by Mr Market. He knows what the bargain hunters wart and then he would issue the bad news if hope is too strong to let the bargain hunter burn the money on fire! Bargain hunters are usually very conservative and tough to pick up the bargains but they usually don't have vision for long term and they usually don't keep big enough cash reserve for long term. So they got the bargain to the value but they could not hold to let the value shine again! No money, value, margin of safety, and discount could be safe on the fire! I feel the pains on the fire since I used up all of my cash reserve in my corner. It is the sign that my corner which was safe in GFC but was risky now! That is terrific!