All IMO
I suggest mums and dads do not panic sell because of what the US market does...
My logic is because when you follow the market long enough or just look at market index charts you will see the market cycles and always recovers. Well at least the US market does...
IMO with BOT trading and other stock traders there is a whole lot of, shall we say, games being played by various parties to influence and manipulate the way people feel about the market or a particular stock.
IMO there are two parts of the market
For what its worth I call them Traders and Investors
(This is not a discussion about TA vs FA and I mean no offence to any traders)
If you believe in the fundamentals of a stock and hold long then you are an investor. In general terms daily movements whilst frustrating are not a real concern to the overall big picture.
If you are placing short term orders then you are a trader and will likely have stop losses etc. There are many numerous companies spruiking get rich trading platforms. The problem is they all pretty much teach similar strategies such as stop losses and therefore a trader is in competition with all the other traders out there in the market. Adopting Pareto's Principle it would suggest only about 20% of traders make real money. ...and with all the big firms with their BOTs who are directly wired into the ASX computers making decisions and orders in nanoseconds its a tough market.
What I am suggesting, and IMO, is that the BOTs have built in algorithms that know how the majority of traders place their trades and can use environmental issues like the DOW dropping to manipulate and create fear and the illusion the market is panicking. I am sure there are many other environmental factors such as blue chips going ex-dividend in March and September each year...
I certainly do not have the time nor resources to compete as a trader and take on all that competition. I do enjoy reading all the TA analysis like to see how it plays out ...and I wish all the traders out there the best of luck and profits. IMO the unfortunate reality is, unless it is a strong bull market, if one trader is winning then by definition another is losing. ...and the platforms always win because they are clipping the ticket on each trade
All IMO and not advise just an observation.
Thanks to all those who help me understand the FA better on a stocks I hold.
GLTAH
(20min delay)