Tuesday, August 26, 2008
The NOISE in Make Money on the Stock Market
The Sound of Money.
Making money here depends on one main event, on the mood in the market, that is, on whether people are willing to pay more for the share than what one has paid for. A share has really little value until someone is willing to exchange it for a certain amount of money.
In a bullish market, people are ready to pay a higher price than a previous buyer to own the share. Reversely in a bearish market people are ready to sell a share at a lower price than the previous seller to be rid of it. The value of a share can thus fluctuate sharply depending on the sentiment of the buyers and sellers in the market. There is always a battle going on between the bulls and the bears, and this battle can be subdued and quiet or hectic and violent, creating an atmosphere of noises.
This noise is a reflection of the sentiments in the market, and it pervades the whole market, being carried by the media, the investors and anybody who is interested in the market. It thus holds the key to make money. Knowing the sentiments of the investors is a way above all the various instruments investors are using to determine the trend of the market. If one is attuned to the noise one can sense the sentiments.
Noises can be observed. When sales-girls and sales-men become indifferent to making a sale, noise is evident. When club memberships are changing hands at higher prices, noises reverberate. Properties being transacted at higher and higher prices is noise getting louder and louder. When trishaw riders, men in singlets, and people in chakeahs or slippers, entered the market these were very loud noises.Making money here depends on one main event, on the mood in the market, that is, on whether people are willing to pay more for the share than what one has paid for. A share has really little value until someone is willing to exchange it for a certain amount of money.
In a bullish market, people are ready to pay a higher price than a previous buyer to own the share. Reversely in a bearish market people are ready to sell a share at a lower price than the previous seller to be rid of it. The value of a share can thus fluctuate sharply depending on the sentiment of the buyers and sellers in the market. There is always a battle going on between the bulls and the bears, and this battle can be subdued and quiet or hectic and violent, creating an atmosphere of noises.
The noise was in the library when a lady said into her handphone that she had just let go her DBS shares. Noise rises when everybody talks about the stock market at wet markets, food courts and gatherings. When security analysts are recommending a buy on the non significant stocks it is akin to a trumpet blast at its highest volume. When all the various media are predicting how great the boom will rise, that smells like a volcano erupting deafeningly. This noise also applies when all the various media are reporting nothing but doom and gloom. Usually when this hot noise prevails unanimously, the market is reaching its zenith, or when the noise proclaims the death knell of the market, it is plummeting to its nadir.
A trend in the bull market will prolong only when there are greater heroes receiving the heavier and heavier baton to pass it on. Reversely, a trend in the bear market will continue when people keep salvaging from what shares they own regardless.
Being able to listen to the noises helps one to stay on course or pass the musical parcel before the music stops, or avoid catching the falling knife despite the tempting prices.
Noises spring forth from the sentiments of the market as sentiments drive the market.
Catch the noise and ride the sentiments and U1nomore.
WatmoI1
Ron
WatmoI1
Ron
# posted by chunmu @ 7:12 PM 
