You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Do you worry about a 1987-like crash?
- Thread starter deviltrader
- Start date
Quote from michaelscott:
You guys dont understand the dynamics of a chart. You have this huge cup-like structure in 2006 and then your surprised that the market pulled back in February. The pullback was exactly half the height of the cup. This is NORMAL market dynamics. This is EXACTLY how a chart is supposed to function.
The reason why the pullback was so sharp and intense was because of the size of the cup. In past years, there were two smaller sized corrections, but in 2006 it was one long protracted downward slope followed by a long upward protracted slope. At the end of the upward slope, your going to have an intense pullback that will usually be half the height of the cup.
This is not a bearish sign in the least, but a hugely bullish one at that. Usually after such a pullback, then you have an advance that is the full height of the original cup.
It is not time to be afraid yet. There will be a time when you should be afraid, but that time is not now.
Stocks have a lot of room to run.
good analysis
Take a look at a lot of the foreign markets that have already recovered from the feb selloff and are even making new highs
Quote from michaelscott:
You guys dont understand the dynamics of a chart.
It is not time to be afraid yet. There will be a time when you should be afraid, but that time is not now.
Stocks have a lot of room to run.
hello michael,
you`re probably right and stocks do have a lot to run.
but you never know what`s around the corner.
a disaster CAN happen that wont be seen on any chart (9/11).
its not that I`m afraid, I just want to protect my capital and be prepared for every eventuality that I can think of.
Home owners have insurance (are they afraid? no its just common sense)
So why not have insurance for my trading capital?
After all its my business I`m talking about!
There are much worse disasters that lie around the corner everyday of our lives. In the 1960s, the students in schools would plan for nuclear war just about everyday. They would learn to scramble under desks. Fallout shelters were erected everywhere. Nuclear missile interceptors were parked near large cities like the Nike bases in New Jersey.
When you invest in the market or even walk out the door to work, you take a risk and gamble. That is life...
When you invest in the market or even walk out the door to work, you take a risk and gamble. That is life...
Quote from vetten:
hello michael,
you`re probably right and stocks do have a lot to run.
but you never know what`s around the corner.
a disaster CAN happen that wont be seen on any chart (9/11).
its not that I`m afraid, I just want to protect my capital and be prepared for every eventuality that I can think of.
Home owners have insurance (are they afraid? no its just common sense)
So why not have insurance for my trading capital?
After all its my business I`m talking about!
Quote from vetten:
hello michael,
you`re probably right and stocks do have a lot to run.
but you never know what`s around the corner.
a disaster CAN happen that wont be seen on any chart (9/11).
its not that I`m afraid, I just want to protect my capital and be prepared for every eventuality that I can think of.
Home owners have insurance (are they afraid? no its just common sense)
So why not have insurance for my trading capital?
After all its my business I`m talking about!
Exactly, your insurance should be built into your risk control plan.
Know your what-ifs, and insure against them taking you to the cleaners.
Quote from michaelscott:
There are much worse disasters that lie around the corner everyday of our lives. In the 1960s, the students in schools would plan for nuclear war just about everyday. They would learn to scramble under desks. Fallout shelters were erected everywhere. Nuclear missile interceptors were parked near large cities like the Nike bases in New Jersey.
When you invest in the market or even walk out the door to work, you take a risk and gamble. That is life...
We had disaster drills in the early 80s, too.
I remember thinking wtf??? This 1st grade desk that I'm hovering under is not going to do anything if our school is nuked. Is this a sick joke?
If you cant tolerate the risks of unforseen negative events don't buy stocks. Its that simple.