reply to post by redhatty
there is no silver lining. just personal profit. and the knowledge that this kind of thing happens sometimes. and when it does then HORRAY CUS YOU CAN
but the down side is obvious. people losing jobs and people getting scared. but in the end, the people in charge dont want it to go anywhere, because
they are making so much money too!
its funny because right now, the fall of this, means someone made major bank. in order for anyone to take a profit, someone has to lose. and the
majority of the time its a few people making HELLA profit and a whole lot of people losing. its the 10-90 rule. 10% of people have 90% of wealth.
the real kicker is they know whats going to happen, and even influence it to their whim because they "play" with so much money. lets say you use 1
billion dollars to trade (not unheard of with hedgefunds)
well they would throw 100mill on the market in any direction (long or short). and because they used such a heavy amount it will influence price action
in the direction they wanted to go.
so now they have a profit on that 100million. then they do it again and again, and since everyone is now jumping on their bandwagon THAT in fact
influences the market even more.
so you got 100m+profits1, then 100m+profits2, then 100mil+profits3 and so on until your 1billion is now 3 billion.
then all at once CASHOUT and watch the panick. its hilarious if you are demented. everyones stops get hit, and the price will shock back and forth
like a trampoline.
great thing is you kind of know when these things will happen. not exactly but somewhat. if you watch your economic calendar for things like the NFP
report or interest rate changes. thats when the big fish come to play. problem is; they dont always play in the same direction. you can get really
high volatilities but not much price trending.
i actually run away from news reports while trading. a report can say one thing, but the market move totally against it. like in December when the
nonfarmpayroll came out, and everything said gloom and doom, BUT THE DOLLAR WENT UP (wtf when i lost money) so i stay away from these things.
but in the end the market restabilizes and it starts all over again. just pray for the weekend so the banks close
it will all come back, they want it to so it has to. even if it does die (like so many currencies have before) they come right back. just trading a
little higher than before