Sunday, 25 January 2009

Market exit point

My experience with market is unless you know that you're good with market movement never touch it. Everybody says they know when to enter into market but ever considered when to exit it. In last 11 years of my experience in Currencies & stock , market taught me this.

When only professionals are involved get into the market when general public is involved come out of it or don't enter the market. Yes, when general public enters into market they invest are mostly on credit, this will in-turn inflate the prices. The time to sell your stakes and get hold of your cash. When only professionals are in market then you know that there is scope for general public to enter into market. So you even if you buy a really bad stock you can make profit out of it.
This is a cycle that happens in every decade, that is the timescale banks run-out of money and start asking for their money. If you're asking why current situation - there is one word -greed. The professional people are making their livings out of it not greed but when public enters it is greed.
Everybody remember Leeson & ING bank episode. Can anybody differentiate the ING bank problem & Lehman or all failed banks. Leeson was punished by law but in current problem are they planning to punish somebody. 

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