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  • Dame Stephanie Shirley

    Unfortunately, we live in an era where the ignorant dickhead is celebrated. The greater the ignorance or the more appalling the behaviour the more oxygen they are given. This is a sad consequence of the inevitable dumbing down of society at large and the rubbish fed to us by a media that is full of… Read more…

    Dame Stephanie Shirley
  • China’s Market And Policy Timeline

    Bloomberg has created an interesting graphic looking at the various market interventions undertaken by the Chinese government. The part to concentrate on is the number of actions taken to stem the decline – none of which seemed to have worked.  My feeling has always been that markets will go int he direction they want to… Read more…

    China’s Market And Policy Timeline
  • Nothing Quite Like A Melt Up
  • If Famous Scientists Had Logos

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Dame Stephanie Shirley

Unfortunately, we live in an era where the ignorant dickhead is celebrated. The greater the ignorance or the more appalling the behaviour the more oxygen they are given. This is a sad consequence of the inevitable dumbing down of society at large and the rubbish fed to us by a media that is full of people whose sole academic training consists of doing a degree in media studies and spending all day on Facebook.

It is therefore wonderfully refreshing and uplifting to listen to someone who after a shocking start in life not only did something with their life but also dramatically changed the course of the lives of others. To my great embarrassment I had never heard of Dame Stephanie Shirley until she popped up automatically on my podcast playlist . What was a ten minute drive home became a 30 minute meander around the block whilst I listened to her 81 year old razor sharp mind and her remarkable story.

Click on the image below for the podcast.

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China’s Market And Policy Timeline

Bloomberg has created an interesting graphic looking at the various market interventions undertaken by the Chinese government. The part to concentrate on is the number of actions taken to stem the decline – none of which seemed to have worked.  My feeling has always been that markets will go int he direction they want to go and any government intervention is simply an attempt for politicians of all stripes to feel as if they are doing something useful rather than just taking up space.

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Nothing Quite Like A Melt Up

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If Famous Scientists Had Logos

6EFm4hS

That Must Have Stung…..Just A Little

This has been a tough week for the 0.01% out there.

For the world’s billionaires, this week is already proving rough. The Chinese stock market dropped 8.5 percent Monday, the biggest single-day decline since 2007, and the world’s 400 richest people lost about $124 billion collectively. Chinese billionaires lost more than $14 billion of their net worth Monday alone, while the Shanghai composite index dropped by another 7.6 percent Tuesday, Bloomberg reported.

Wang Jianlin, the richest person in Asia and chairman of the Dalian Wanda Group, was the hardest hit. He lost $3.6 billion Monday, more than any other billionaire. Of that, $2 billion was lost when shares of the Dalian Wanda Commercial Properties Co. sank 17 percent since going public in December. Another $1 billion in losses came from declines in the Wanda Cinema Line Co.

Bill Gates, the former Microsoft chairman, was the second-most affected person, losing more than $3.2 billion Monday. In Asia, billionaires in mainland China suffered the most, losing 6 percent of their total net worth. 

More here – International Business Times

I Am Fascinated By This

AMMO NYC is my new favourite YouTube channel. I am fascinated by this young blokes fastidiousness and professionalism. Every tradesman I have met for the past year has been the complete opposite – a total collection of fuckwits who are incompetent beyond belief. This gives me hope that out there are people who know what they are doing.


 

Drawdowns

I thought will the market currently going to hell in a handcart it would be instructive to generate a few drawdown curves for the main players. Moves such as the one we are undergoing are always instructive, if only for the illustrative effect of seeing how little the media actually knows about market. The issue for me is one of surprise – I am always surprised that others are surprised that the market goes down – to the best of my knowledge the law of gravity as it applies to stocks prices has not been repealed.

I posted the following comment in the Alumni Section of our Mentor Program forum.

I always return to the notion that the market will tell you everything you need to know – you need to know how to listen.

For example, the US has been weak for months, the various new high/new low indices have been faltering and the number of stocks within each index that is above its benchmark moving average has been steadily falling. Put this together with a market that was range bound and all you needed was a catalyst in the form of China to trigger a move. However, you can only see these things if you are watching them as they unfold – this sell off has obviously caught a lot unprepared simply because they either were not listening or didn’t believe that markets could ever go down.

From my perspective it is impossible to have the worlds largest market go sideways for a year and for the worlds second largest market to fall out of bed without there being some form of reaction. The reaction might be a one week wonder or it might see out the year, no one knows and those who say they do are deluded. The central issue is having the ability to be involved for however long it lasts. I find the pain of getting involved in a move and not making as much out of it as I should is much less than not being involved at all.

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As is plainly obvious drawdowns are not new – markets have always been afflicted by these emotional reactions. Sometimes, they are accompanied by a reasonably cohesive narrative such as during the GFC, at other times it is simply the blind reaction of the herd and we look for justification afterwards. Irrespective of the causes, they are inevitable and they are a feature of trading/investing that everyone has to find a way to deal with. The only way I have found to deal with them is to have a fluidity of perception and to  not be wedded to any single view point. I understand that we a little more than a collection of biases and watching and listening to the reactions of people to the slip merely reinforces my opinion that most people have never had a rational thought in their entire lives. This goes doubly for those in the sell side of the industry who are offering all manner of silly platitudes and little homilies as a means of dealing with what is a real event.

The key point in all of this is to trade what you see, not what you think you see or more importantly what you want to see.

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The Trading Game Pty Ltd (ACN: 099 576 253) is an AFSL holder (Licence no: 468163). This information is correct at the time of publishing and may not be reproduced without formal permission. It is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on any of the information you should consider its appropriateness, having regard to your own objectives, financial situation and needs.