Thursday, March 17, 2011

Wha Does A Hymen Look Like?

Increases and decreases in slow quick

specificity of various stock exchanges and markets is such that the price slowly climbs up further resistance to piercing, but as I started to fall down and everybody recognizes that it is a bear market is doing very quickly. Studying the charts this pattern is repeated again and again - arduous climb and sudden drop. What is the state of things? My theory is this ...

People buying shares typically need more free cash than investing in forex, because it is a lever. On the Stock Exchange for $ 500 you buy a small batch of shares in a company and pay to the commission about the maximum 3zł. In forex, for the same amount of cash is micro flight can no longer "go crazy".

The WSE investor buys shares if the climb up, with the next payment which would look dokupujemy still buy and the cycle repeats with successive tides of cash. Larger institutions (as implied) also do not shop for the whole capital only gradually increase the position. On the forex investor / speculator also dokupujemy or piramiduje - although the fx could equally buy and sell the whole situation so there might be a little blurry.

But what happens when the course starts to go in the opposite direction than expected. In such a situation we do not sell shares every month or every few weeks as they were bought only sell all at once, no one yet I do not want to lose capital.

So slow growth by the above theory is due to the gradual building of a position due to sharp declines sell out everything at once when we see danger of losing the money earned. So at least I do and I assume that when a sell signal is nobody wonders whether to sell 1 / 4, 1 / 2 or maybe a whole. Another element is that for every person in another place is a sell signal and the threshold of pain at a loss when there is no plan.

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