Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Adapting to Systemic Dysfunction, Every Investment is a Pure Gamble -PERIOD

Stock-Markets / Financial Markets 2010 Jun 02, 2010 - 01:49 AM GMT

By: Joseph_Russo

Stock-Markets

Best Financial Markets Analysis ArticleSame As It Ever Was With the possible exception of Black Swan events, and beyond the amplification and speed with which share prices can persistently collapse following negative episodes of such, there is no difference in navigating markets now (amidst a heightened state of systemic dysfunction) relative to doing so at any other point in market history.


House of PainBlack Swan

Having sad that, we suppose a better title for this article might have been "Why it is essential to maintain sound risk management and if possible, to systematically automate proven technical disciplines regardless of how good or bad prevailing market conditions appear", but it just seemed too darned long.

Every Investment is a Pure Gamble -PERIOD

DiceSpecifically relative to ones clearly defined objectives and tolerance for risk, (another way mainstream answers the question of how much of a gambler one may or may not be), it is in our view, far better to be continuously prepared rather than finding oneself in the awkward situation of enduring excessive levels of discomfort while adapting to changing market conditions.

Be it a Day or a Lifetime

By their very nature and throughout all timeframes, financial markets have always been and shall continue to be notorious for their sudden and dramatic mood swings.

Whether over the course of a single trading session or that of an entire lifetime, sudden and repetitive swings from optimism to pessimism are the core elements upon which share markets thrive.

The House must thrive or there is No Game

Unfortunately, most fail to recognize the nature of the terrain, which suggests that the very core elements upon which markets thrive are those typically responsible for the inevitable deterioration of participants (gamblers) account balances (bankrolls).

Casino exterior

FormulaHappy and sad

Maintaining Tactical Context

Relative to all levels of engagement, the inevitable and never-ending succession of cyclical shifts from optimism to pessimism, and the near-impossible timing of such, makes it extremely difficult for lone participants to position themselves on the right side of trend, not to mention reversing positions when trends inevitably change direction.

Chess

The all too common quandary described above provides testament to the necessity of maintaining strategic disciplines relative to the context in which one has sought to engage in trade (Gamble, Risk, or Speculate) for his or her own benefit.

America

The land of innovation and entrepreneurial spirit could not exist without risk and high stakes gambles. Simply put, innovation is born of extreme risk and intense speculation. Nothing ventured, nothing gained - and to that we shall add, nothing lost - except earned freedom and limitless opportunity.

Founding fathersHand We The People ...

Casino Interior

One Big Casino

(always has been - always will be) Be it the long-haul investor hoping to cash out with a big retirement bounty after buying and holding for 20-years, or the day trader looking to scalp a day's wage by the end of a trading session, each are gambling on a future outcome to their benefit.

Casino Interior

Tipping the Odds

Despite the greater odds of coming out ahead over a 20-year period vs. a single trading session, there is NO GUARANTEE that such odds will deliver. Just ask those who in 1989 bought and continue to hold large portions of their retirement nest eggs in the Japanese Nikkei Index. After 21-years, the Japanese stock market is still down some 70% from its all-time highs.

Nikkei Chart

Pervent return

Find a Reliable Compass

Accurate charting and forecasting provides traders and investors with one of the most essential tools of navigation, a compass. A professional chartist should be able to forewarn his or her readers of any potential obstacles ahead, and then quickly reorient them upon moving through such waters with specific contingency for their preferred method of travel and comfort.

Compass

No Surprises

Market shocks, sudden shifts in trend, temporary panics, or true Black Swan events, should never come as a surprise for those who employ the services of a chartist who is worth his or her weight.

In part-II, we explore how this chartist plots a course in real time, and we shall reveal precisely where this chartist believes we stand (in Elliott terms) in the grand scheme of things.

Until then, Trade Better/Invest Smarter

By Joseph Russo

Chief Publisher and Technical Analyst
Elliott Wave Technology
Email Author

Copyright © 2010 Elliott Wave Technology. All Rights Reserved.
Joseph Russo, presently the Publisher and Chief Market analyst for Elliott Wave Technology, has been studying Elliott Wave Theory, and the Technical Analysis of Financial Markets since 1991 and currently maintains active member status in the "Market Technicians Association." Joe continues to expand his body of knowledge through the MTA's accredited CMT program.

Joseph Russo Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in