Forum Archive Index - February 2002

[hugh webber <hugh.webber@clear.net.nz>]

Good stuff Hoops, I'm with you.

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From: Richard Hooper <hoop@ihug.co.nz>
To: sharechat@sharechat.co.nz
Subject: Re: [sharechat] why is the price falling
Date: Friday, 22 February 2002 20:51

  Why is the market falling???
  Probably due to many factors, which unless you understand how they all work 
and intereact with
each other,you should start at the beginning first rather than entering this 
area in the middle
with this question why is the market falling....

Lesson 1:
...James... When learning the stockmarket, keep it simple & be emotionless. You 
will have to
broaden your mind & throw away any biases you have in life.

1...It is a market, therefore price is dictated buy supply & demand.
2....Humans belong to the animal species, hence they rely heavy on animal 
instincts.
3....Herd behaviour is very common...
4....Sometimes there is not logic..Due to herd behaviour a great stock may get 
oversold for no
reason, a poor stock may be rocketing up in price for no reason ...stampedes 
could happen even for
no reason, and stocks ignored for no reason.
5...Having a Business Degree gives you no guarantees to make money on the 
market because of social
influences.
6...Having a psychology degree gives you no guarantee to make money either 
because of the business
factor
7...Having both degrees is a recipe for disaster as one would think too hard 
and screw things up
totally.
8...Advice.......Don't buy a crystal ball
                        Don't look in the rear vision mirror while travelling 
forwards ( history
may not repeat itself)
                        Don't act on what you read in the newspapers (too late)
                        If people are taking about a stock it's(too late).
                        Analysts get it wrong often ,,and sometimes they 
operate a hidden agenda.
                        Trust funds gives a salaries to one or many people who 
the investor never
sees. If that investor saw some of these people, they might not let them 
babysit their dog  less
alone trust them with their life's savings.(ask the question, would you let 
this man go out with
your daughter?)
                        WISDOM is a great asset....James unfortunately this 
grows with age..unless
you have acquired it as a natural gift ( I developed wisdom at a young 
age.useless at the
time....still capable of doing stupid things..probably more so than others) To 
help develop wisdom,
associate and talk lots to the elderly people and relate to them and their 
experiences. 
                        
                        Don't always believe what you read on 
sharechat.......dammmmn....there goes
my post here....oh dear..

Happy learning
Hoop

  ----- Original Message ----- 
  From: james.goodman 
  To: sharechat@sharechat.co.nz 
  Sent: Friday, February 22, 2002 12:41 PM
  Subject: [sharechat] why is the price falling


  This was a question I asked, it didnt have to be answered but insted of 
getting in to detail I
asked the question to see if anyone had any idears (maby some inside info or 
something else ) or
maby they could direct me to something else (as they did) to help me which I 
apprecaite, as I am
only learning on where to find what I am looking for on here by reading what 
other people say so I
can search for it and read up on it.

  I think you should take the post for what it is "A general question." There 
is allways alot of
answers for a general question. 

  PS I am only 19 and just getting into this side of things there is allways 
alot to learn 


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