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.
RE:DERIVATIVES-TIME BOMB in our Financial system
by Good_man on Mar 14, 2008 09:43 PM Permalink
At any rate only 'few' can gain and 'others' will have to loose.
This is the essence of all gambling. Wise economists should cool the masses by providing them stability and essentials of life commensurate with their efforts.
To convert every breathing entity into a nervous rake hoping to earn from stock markets rather than an honest wage from a well deserved job, is nothing but "harvardian" blunder.
