The Asian meltdown has begun...
- Thread starter simon1080
- Start date
Yeah, some of them use real estate money, but those are the fortunate type. Those retirees hanging around brokerage, as you saw on TV, those are the people who lived throught late 70s and early 80s (not an open eco back then), usually in government/SOE positions, with very little edcuation (grow up in the 60s, during the cultural revoluation, that's a political unrest lasted for almost 10 years), those people simply can't recover...
I know a IBM sale manager who have the bulk of her wealth in real estate and stocks, she is the well educated type (late 30s, Beijiang Univesity Guadate), and they still get stuck in stocks and prepare to sit through some down turns (that was when the SSEC index at 3600), she just lost another 15%...
Mind you, you can't short stocks in China, and there are no index futures (not 100% sure now, but they delay introducation ever since early 2007), not sure about index options, but you do get some stock options in Shanghai. Just imagine a INVESTOR or a trader trying to work through a bear market with the products avariable to them, ROTFLMAO...
yes you cannot short, you cannot daytrade(buy/sell same day), stock cannot move more than 10% in either direction, there is a 2 hour lunch break where market is closed for traders to take a nap, there are no options. Can you imagine the market vol if those hard checks are removed.
They were trying to introduce options on the index etf50 i believe, but it's kept been delayed. It will introduce a whole new herd of sheeps to the slaughter, if you are an option trader that's the market to be in once it goes live.
Only thing i disagree with is education been a factor, plenty uneducated people made tons of money in china, probably more than your average white collar college graduate working in a company. And both the educated elites and grandma are equally clueless about trading. The main issue is the lack of understanding about stop loss.
yes you cannot short, you cannot daytrade(buy/sell same day), stock cannot move more than 10% in either direction, there is a 2 hour lunch break where market is closed for traders to take a nap, there are no options. Can you imagine the market vol if those hard checks are removed.
Wow. there are actually rules in place in some part of the world.
Wow. there are actually rules in place in some part of the world.
Anyone here have any thoughts on Taiwan? It seems to be trading in lockstep, but is obviously a much better priced mkt.
hi 05,
man, i love the way you write. Yes, the main issue is that they don't cut their loss. The market operates in a way that retails only have one direction, they simply can't don't have the tools in a bear market.
Every since earlier this year, I start to socialise with those well educated type, Good uni degree, great job high up in a foregin firm etc. Those are quality people, with drives and thinking on par with the rest of the world, yet, when I look into the way to invest, it just surpise me. Load themselves with as much debts as possible, buy into appreciating assets, yet there are little risk management, or simple no consideration on risk..
