DERIVATIVES-TIME BOMB in our Financial system
by dinyar on Mar 14, 2008 07:06 PM
Derivatives trading is not for everyone. Especially the new entrants into stock markets. Hope, Fear & Greed are emotions of financial destruction. Those who respect the market and trade with the trend with proper stop-losses save themselves from the ruin. Most of the Traders in Derivatives only take into account the PRICE factor. That%u2019s the cause of ruin. I have seen well-known analysts ignoring the TIME factor. Stock Market moves in CYCLES i.e., 45 months, 7 years, 10 years, 30 years 72 years, 90 years etc. You must take into consideration larger cycles. When you enter a trade and get hit by a larger cycle. Always look for a Monthly Trend followed by Weekly trend and then lastly Daily trend. Day trading requires great discipline which very few can follow. That%u2019s the reason why most of the Day Traders go broke in a short span of time.
