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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: TobagoJack who wrote (37533)7/24/2008 8:36:38 AM
From: elmatador  Read Replies (1) | Respond to of 217671
 
Look to the X axis. Mankind have always bet on the right hand side. I grow you win. I lose you lose. This creates critical mass and momentum. Through this mankind got out of the cave.

Shorting stocks is a bet on the left hand side. I win when you lose. This creates a system with two forces:

One pulling towards the + another pulling towards the -.

A company with overvalued stocks, may be shorted and the ones betting in the - side wins. Overall is a loss.

In a bubble players concentrate on the + side. On a bursting people concentrate on the - side.

"Concentration" is the critical thing. You need to have the critical mass on the - side to be able to turn the game around. Here enters my constant theme. Muck throwing.

You may not even have to concentrate too much on the minus side. You spread bad news and the herd does the rest.

I have been witnessing this for the past 1/4 of century. Therefore today is crystal clear how the system works.