win,steve,kim,suleman and others
i traded GERN few times but i don't know what it is, i didn't have luck.
if i go short, stock go up.
if i go long, stock go down.
i thought i share what i read from one of my friend's note. i am not sure
what i was doing wrong!!!!!!!
The Spiritual Quality of Money:
The first law of science is that energy and matter is not created nor destroyed, and the second is like unto it; to every action there is a equal and opposite reaction. In the normal course of transactions there is a buyer and seller, money is transferred from one to the other, the debit is balanced by a credit and the world is no richer. Both sides benefit from trading so there is synergy - not a zero sum games but mutual gains.
But the Government can create money from nothing. With the authority of the state the central bank can add funds to treasury accounts that are not debits to anyone's account but additions to the issuance of notes, bonds and certificates of public debt. When the debt is raised it is done by creation of instruments of obligation to pay. The US Federal reserve can create treasury accounts based on deposit of bonds which it has issued. Since the government has with the central bank hundreds of billions of treasury notes and bonds on account, it owes itself money and pays itself interest. In this way governments can make something of nothing but rests only on the faith that it will pay.
Value is like the holy ghost of money. When the value of US bonds increases the numbers in the treasury accounts go up. When the stock market goes up the value of stock accounts rises but no debits are made to any other account. There has been and increase without decrease. It defies the laws of physics. BUT. it goes both ways - what spirit has created, the spirit can take away.
The whole financial system depends on the mystery of faith. If the belief that paper is money holds then the value of the money stocks and bonds is solid. When there is a massive failure of faith the system fails. The global system is having a crisis of faith..
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Mistakes: When we hit tops or bottoms of moves it's easy to make mistakes. The point is to recover quickly and keep both directions open -don't get tied up or down. In sailing, mountain climbing, or options trading - skill, planning, knowledge can be tested by sudden and unexpected forces of nature. The survivors don't make many fatal mistakes by being prepared and careful . |
