Wednesday, January 28, 2009

Why people dont sell and Buy in BEAR trend like they do Buy and sell in Bull trend

An important Q ? Do u like to buy and sell only or u look for short selling also...?

The human mind is a funny thing.People see the obvious way of making money BUY and then SELL .Not everyone can do the reverse.If you see a seller is always smart and alert when compared to a normal buyer.Most people who do the regular buying are somehow attached to
the company in some way.They think of something and buy and wont sell even when it is time to sell.This kinda behaviour is not seen with a seller.And sellers dont have time to sell and hold they know they have to make their logic look good .Take a case of Lnt why did it go up so much and why did go down so much if all those guys invested in that company are long term.How many people came out witha sell report when the bull market was on? now everyone wants to rush and sell.Really weird logic !!!If you look at normal business are built around perception and hope and loads of emotions.When the hope or the story is shaken it changes the emotion and the sentiment.The important things which drive the market are emotion and sentiment.

It took 5 years to build the bull mkt and it took 1 year to nuke that .A lot of so people talk about economy and numbers and crisis what not .Do people talk about how much they made or lost in this phase of so called bull bear fight?Lots of people who talk all this are on the buy side so where are the sellers? Sellers have a low profile always .Is it like the smart keep shut and the dumb make noise all the time.Seller is always like waiting for his move like a tiger waiting for his target
to strike at the right time unlike the buyer who jumps to buy in greed of making less in the move.Seller waits for the his turn to pound mercylessly.

BTW i wanted to ask you if your a short seller when do u short ? do you short when mkt is going down or short when all is good and green.We sell because we PANIC, which blinds us and we fail to comprehend that there is a limit down to where prices can go. We forget that markets always give another chance. We sell because we think that it is our last chance to exit and save the last paise we have left to salvage.

Have you ever wondered what is VALUE ?
The market doesnt see what is value and what is not it rises or gets pounded.Everyone says buy and hold.But seller never says sell and hold .There is a time to buy and selling at sometime completes the transaction.

so if you know how to sell you will know how to buy also.Dont listen to fools to tell you what to do so called analyst on CNBC. Make your own game plan and execute it.


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