Re: Naive Stock Market query



On Tue, 07 Oct 2008 00:22:39 GMT, Flyiñg Ñuñ 2°°8 + commented

Ali wrote:

A wise investor always buys in a falling market and sells in a
rising market - just before the trough or peak, so the other party
to the transaction takes the loss. The skill is in predicting the
peaks and troughs.

Sounds like guessw*rk to me, or possibly just flicking a coin.

Of course it is, and roughly every ten years everybody gets it wrong at
the same time, and CRASH!

I won't try it 'cos my luck always seems to be just off. But my real
querey was, when so many are wanting to sell, who is actually buying
at that time, 'cos they always manage to sell don't they.

There's always someone willing to take a gamble if the price looks right.

And no, they don't always manage to sell, so they drop the price, and
keep dropping it until someone realises the price is way below the asset
value, steps in, buys the whole company, breaks it up and flogs the bits
for spares.

--
Ali
http://homepage.ntlworld.com/my.web.pages/ Don't go there.
UPS/FUNTO Sept stats: http://my-web-pages.110mb.com/stats/
Five an a half years' statistics now available.
.



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