Why Are Financial Markets So Evil?

by | Jul 2, 2019 | Free Education | 140 comments

Why Are Financial Markets So Evil?

Why are financial markets so evil? Why do they move in the exact opposite direction that you want them to when you commit to a position? When you buy, the price drops. When you sell, the price moons right afterwards. When it looks like the coast is clear and everything’s positive, the market crashes. Is it you, or is it someone pulling the strings that hates you and is doing their best to ensure your doom? 

Unfortunately, those that are relatively new to financial markets will buy into the FUD that some evil player is out there pulling the strings on this market, but unless your chosen market to trade is extremely illiquid and therefore prone to manipulation, no one entity can control the market for any length of time before the vacuum gets filled. (and EVERY financial market is manipulated to some extent by those with the means to do so) After trading financial markets for the past 23 years and making every mistake in the book, I’ve noticed that there are some very simple, specific reasons why markets act like this, and it has everything to do with the way that we all think. 

 

What do we investors want? CERTAINTY and REDUCTION OF RISK.We’d all like some kind of reassurance that we’ll get our money back plus some return. And where do most people search for certainty and reduction of risk? BY ASKING OTHERS. 

 

We do this in our daily lives by searching product review ratings before we buy something. And those that have dined at a restaurant lately, or have bought a product on amazon and given it a five-star review can generally be trusted to provide honest, true information to reduce the risk of you making a bad purchase. We compare top ten reviews and comparisons before we buy a car, shouldn’t the same logic apply when investing? 

 

NO!

 

By taking mass social input into your investing decisions, you automatically become part of the largest, least knowledgeable group of investors. And these are also the ones most likely to panic and make rash decisions when things don’t instantly go their way, which is almost assured to happen with normal volatility. Markets will move around and these folks can’t stand the heat, and will bail at the first sign of adverse price movement. 

 

This is the equivalent of standing up and yelling “FIRE!!!” in a crowded theater. And now with social media at everyone’s fingertips, you can amplify your fear globally and start the panic. 

 

And this works in both directions; we recently saw a “panic to buy” as the price of Bitcoin approached $14k, because….hey this might be the very last rally we’ll ever see, right? Rallies cause pain just like sell-offs, and the resultant exponential rise causes those who were bearish/short to buy back their position to close it (adding demand to the mix) and the higher that the price goes, those who were patiently waiting for a pullback finally panic and buy in, afraid to miss the train. 

 

And as we can see by this week’s pullback down below $10k, that mass hysteria was the worst possible thing that you could have followed. If you bought at the highs, you’re already down 28% on your position and contemplating choices in life. It’s that evil market’s fault, right? Not really, can you see how you brought that pain on yourself by becoming part of the mass of Retail investors? 

 

So now, let’s look at the flip side. Bitcoin has been selling off since it peaked out near $14k, and this is where investors that were previously posting on twitter that they couldn’t wait to buy the dip as the price was rising…are nowhere to be found, with their heads buried into the sand.

 

“This pullback doesn’t feel right. Besides, someone said that Bitcoin was heading to $1300 again. Better be safe.” 

 

And this is why we had correction after correction in the last Bitcoin bull where people sold out at the bottom of the pullback and subsequently failed to buy the dip. 

 

This is what happens when you try to trade this market by feel, or by plugging into social media for direction. You automatically make yourself part of the largest and least-sophisticated group of traders out there. 

 

How do you fix this and become part of the “smart money” instead? 

 

First off, you have to fundamentally understand how crowd psychology works, and it’s different these days with social media. Being part of a trend is great and is when most of the gains occur, but if you want an edge over the rest of the market, you simply must find a way to get an edge over the herd by entering near the bottom of the move when the situation feels more uncertain, not at the top where the reward is low and risk is high. 

 

Secondly, to find these “better” entries, you have to follow a trading system that takes your discretionary judgment out of the loop. None of the good entries will feel like you’re creating certainty or reducing risk…quite the opposite, in fact. 

 

Lastly, you have to be willing to do the things that the majority of people either CANNOT or WILL NOT do. 

 

Markets by themselves are not evil. We become our own worst enemies when we follow the crowds and invest. 

 

Be independent, and beat the market. 

Doc Severson

Westerville, OH

140 Comments

  1. yetiskin
    yetiskin on December 19, 2020 at 12:42 pm

    I have recently started a web site, the info you offer on this site has helped me greatly. Thank you for all of your time & work. Conni Thomas Asquith

  2. yabanci
    yabanci on December 19, 2020 at 3:45 pm

    There is definately a lot to know about this topic. I love all of the points you made. Lurlene Derril Gerita

  3. 720p
    720p on December 19, 2020 at 5:31 pm

    This is then submitted to the Department of Motor Vehicles. Jana Kliment Morgenthaler

  4. yetiskin
    yetiskin on December 19, 2020 at 6:57 pm

    Proin ut urna eget tortor scelerisque porttitor. Donec at justo tellus. Integer maximus erat justo, a accumsan leo iaculis nec. Kellsie Ferdie Leta

  5. yabanci
    yabanci on December 19, 2020 at 8:17 pm

    Merely wanna comment on few general things, The website design and style is perfect, the written content is really superb : D. Theda Care Sherill

  6. 720p
    720p on December 19, 2020 at 10:45 pm

    Muchos Gracias for your blog article. Thanks Again. Merrilee Rriocard McMurry

  7. download
    download on December 20, 2020 at 12:21 am

    Wow! Finally I got a website from where I be abvle to in fact get helpful information concerning my study and knowledge. Gabie Reggy Vitoria

  8. torrent
    torrent on December 23, 2020 at 1:46 am

    Hello colleagues, its great post regarding tutoringand fully defined, keep it up all the time. Tiena Butch Gant

  9. download
    download on December 23, 2020 at 3:40 am

    Utterly composed content , thankyou for selective information . Tracey Hadley Mercie

  10. indir
    indir on December 23, 2020 at 5:24 am

    Pretty! This has been an incredibly wonderful post. Thank you for supplying this info. Julienne Reece Madeleine

  11. ucretsiz
    ucretsiz on December 23, 2020 at 6:58 am

    Hi! I simply want to offer you a huge thumbs up for your great info you have got right here on this post. I am returning to your site for more soon. Charlotta Abraham Nagel

  12. indir
    indir on December 23, 2020 at 11:05 pm

    Nice blog. Could someone with little experience do it, and add updates without messing it up? Good information on here, very informative. Florinda Sullivan Tortosa

  13. turkce
    turkce on January 23, 2021 at 7:51 am

    Hello There. I founjd your blog the usage of msn. This is a really well written article. Camel Sheppard Adorne

  14. deadpool
    deadpool on January 29, 2021 at 10:07 am

    I love it whenever people get together and share ideas. Deni Jerrie Eugenia

  15. dublaj
    dublaj on January 29, 2021 at 7:49 pm

    Thanks so much for the article post. Really thank you! Really Great. Lanette Carl Mishaan

  16. watch
    watch on February 1, 2021 at 3:34 am

    After I initially commented I seem to have clicked the -Notify me when new comments are added- checkbox and from now on whenever a comment is added I get 4 emails with the same comment. Perhaps there is a means you are able to remove me from that service? Thanks. Cariotta Elliot Ashford

  17. turkce
    turkce on February 6, 2021 at 7:50 am

    Having read this I thought it was rather enlightening. I appreciate you taking the time and energy to put this information together. I once again find myself personally spending way too much time both reading and posting comments. But so what, it was still worth it! Athene Ricky Shaff

  18. yabanci
    yabanci on February 6, 2021 at 10:11 pm

    I am actually thankful to the holder of this site who has shared this wonderful post at at this place. Ceciley Darrick Long

  19. dizi
    dizi on February 7, 2021 at 3:16 am

    Quite a refreshing outlook, Angelina. Thanks for this. Jennine Sherm Trinidad

  20. diziler
    diziler on February 7, 2021 at 4:13 am

    Nice post. I learn something totally new and challenging on blogs I stumbleupon on a daily basis. It will always be exciting to read articles from other authors and practice a little something from other web sites. Merrili Reggy Car

  21. watch
    watch on February 7, 2021 at 6:04 am

    Amazing! Its in fact awesome article, I have got much clear idea on the topic of from this article. Stephie Dennie Euh

  22. torrent
    torrent on February 7, 2021 at 8:47 am

    Can I simply say what a comfort to find an individual who really knows what they are discussing on the web. You certainly realize how to bring an issue to light and make it important. More people have to check this out and understand this side of the story. I was surprised that you are not more popular given that you definitely have the gift. Hannah Hayden Seltzer

  23. bluray
    bluray on February 7, 2021 at 10:08 am

    Thanks for every one of your hard work on this blog. My mum enjoys getting into internet research and it is easy to see why. Almost all hear all concerning the compelling medium you provide practical steps via the blog and even invigorate contribution from some others on that idea plus our princess is really understanding a whole lot. Have fun with the remaining portion of the new year. You are performing a tremendous job. Pamelina Glendon Sydney

  24. turkce
    turkce on February 7, 2021 at 12:43 pm

    I love Smitten and Wovens wraps, this one is a beauty! Cherry Gabe Otti

  25. anime
    anime on February 9, 2021 at 4:10 pm

    Baru sempet baca postingan ini hari ini, dan ternyata kontennya menarik banget. Kayaknya aku akan sering mampir di mari, semangat update terus kontennya ya min. Reeba Cooper Ashelman

  26. torrent
    torrent on February 9, 2021 at 5:41 pm

    although web sites we backlink to beneath are considerably not associated to ours, we feel they may be really worth a go via, so have a look Ceciley Malachi Subir

  27. bedava
    bedava on February 10, 2021 at 3:06 am

    Excellent blog right here! Also your web site quite a bit up fast! What web host are you the use of? Can I am getting your associate hyperlink to your host? I wish my website loaded up as fast as yours lol Henrieta Wittie Cadell

  28. 1080p
    1080p on February 10, 2021 at 6:37 am

    I really like your writing style, wonderful information, regards for posting : D. Trixy Torrence Durning

  29. diziler
    diziler on February 10, 2021 at 8:29 am

    Hi! I simply want to offer you a huge thumbs up for your excellent information you have here on this post. I will be returning to your blog for more soon. Lurline Hugh Yam

  30. happy
    happy on February 12, 2021 at 3:16 am

    One Englishman can beat three Frenchmen.

  32. Wesleyobliz
    Wesleyobliz on March 5, 2021 at 1:24 pm

    tadalafil generic tadalafil daily use
    tadalafil 60 mg for sale

  33. MichaelNum
    MichaelNum on March 8, 2021 at 6:37 am

    medications without a doctor’s prescription: https://genericwdp.com/ buy prescription drugs online without

  37. Jeffreydaymn
    Jeffreydaymn on March 11, 2021 at 6:53 am

    best over the counter viagra viagra discount
    buy viagra online canada

  42. WayneBex
    WayneBex on March 13, 2021 at 5:28 am

    buy generic 100mg viagra online cost of viagra
    viagra 100mg price

  43. Jeffreydaymn
    Jeffreydaymn on March 14, 2021 at 3:06 am

    viagra over the counter walmart price of viagra
    best place to buy generic viagra online

  44. WayneBex
    WayneBex on March 14, 2021 at 4:13 am

    best over the counter viagra п»їviagra pills
    where to buy viagra

  46. WayneBex
    WayneBex on March 15, 2021 at 2:45 am

    viagra from india 100mg viagra
    where to buy viagra online

  47. Stanleymuh
    Stanleymuh on March 16, 2021 at 8:50 am

    propecia costs prosteride

  48. Ricardojak
    Ricardojak on March 16, 2021 at 8:58 am

    chloroquine usa buy aralen
    cheap erectile dysfunction

  57. RichardTub
    RichardTub on March 21, 2021 at 7:02 pm

    viagra discount cheap viagra online
    viagra from canada

  59. Elmerrak
    Elmerrak on March 22, 2021 at 7:01 am

    ed pills without a doctor prescription ed meds online canada
    cheap ed pills in mexico

  60. Maile Tortorelli
    Maile Tortorelli on March 22, 2021 at 11:44 pm

    Exchange your Ethereum to Naira at 247xchanger Website: https://247xchanger.comSkype: 247xchangerICQ: 658952962WhatsApp: +234 814 277 9376We are here 24/7.We guarantee you fast service delivery.

  61. Marvinpaipt
    Marvinpaipt on March 23, 2021 at 4:45 am

    cheap ed pills pharmacy medications
    cheap ed pills from canada

  64. Elmerrak
    Elmerrak on March 23, 2021 at 2:13 pm

    buy ed pills treatment for ed
    cheap ed pills from india

  65. Terryveire
    Terryveire on March 23, 2021 at 9:24 pm

    ed pills online buy ed drugs
    cheap ed pills from canada

  69. Marvinpaipt
    Marvinpaipt on March 27, 2021 at 4:42 pm

    can i buy neurontin over the counter: gabapentin – gabapentin generic

  70. Marvinpaipt
    Marvinpaipt on March 28, 2021 at 2:23 pm

    prednisone over the counter australia: cheap prednisone – prednisone 20mg tab price

  76. Frankhaw
    Frankhaw on April 1, 2021 at 5:52 pm

    chloromycetin capsules: floxin generic
    buy chloromycetin

  77. ScottEvipt
    ScottEvipt on April 1, 2021 at 6:52 pm

    order minomycin online: biaxin tablets
    vantin price

  78. Frankhaw
    Frankhaw on April 2, 2021 at 7:21 pm

    augmentin generic: buy nitrofurantoin
    buy roxithromycin

  83. Michaellergy
    Michaellergy on April 5, 2021 at 3:17 am

    india pharmacy mail order: usa pharmacy india all generic meds from india

  84. Charlessek
    Charlessek on April 5, 2021 at 9:18 pm

    meds from india: prescriptions from india buy prescriptions from india pharmacy

  85. StevenHeifs
    StevenHeifs on April 6, 2021 at 12:37 am

    meds from india: generic pills india indian online pharmacies review

  90. Billyadage
    Billyadage on April 8, 2021 at 3:04 pm

    best erectile dysfunction pills review: male erectile pills viagra pills

  95. Billyadage
    Billyadage on April 9, 2021 at 5:56 pm

    pills for erectile dysfunction: levitra pills mail order erectile dysfunction pills

  98. MichaelIdody
    MichaelIdody on April 10, 2021 at 2:07 pm

    generic viagra walmart: viagra prescription viagra online without prescription

  100. Harryviomb
    Harryviomb on April 11, 2021 at 2:14 am

    online doctor prescription for viagra viagra without a prescription buying viagra online without prescription

  106. Claudesono
    Claudesono on April 14, 2021 at 12:40 am

    where can you buy amoxicillin over the counter: buy amoxicillin – canadian pharmacy amoxicillin

  109. Claudesono
    Claudesono on April 15, 2021 at 12:33 am

    buying clomid online: buy clomid – clomid uk

  115. Claudesono
    Claudesono on April 17, 2021 at 1:17 am

    where to purchase doxycycline: doxycycline antibiotic – doxycycline 500mg

  119. Robertrindy
    Robertrindy on April 17, 2021 at 10:07 pm

    lasix for sale: lasix generic – lasix side effects

  122. Robertrindy
    Robertrindy on April 19, 2021 at 2:46 am

    paxil weight loss: paxil generic – generic of paxil

  123. RafaelNip
    RafaelNip on April 19, 2021 at 2:09 pm

    paxil ocd: buy paxil – paxil 10 mg

  124. Robertrindy
    Robertrindy on April 20, 2021 at 5:06 am

    paxil online: cheap paxil – paxil for panic attacks

  125. Bess
    Bess on April 20, 2021 at 10:19 am

    It matters less to a person where they are born than where they can live.

  126. RafaelNip
    RafaelNip on April 20, 2021 at 11:58 am

    paxil for premature ejaculation: paxil sleep – paxil ocd

  127. JamesBrant
    JamesBrant on April 21, 2021 at 7:27 pm

    purchase propecia: buy propecia – propecia buy online
    finasteride cost

  128. JamesBrant
    JamesBrant on April 22, 2021 at 12:52 pm

    buy tadalafil: tadalafil – generic tadalafil
    propecia generic finasteride

  129. JamesBrant
    JamesBrant on April 23, 2021 at 6:33 am

    tadalafil 20mg: tadalafil – tadalafil generic india
    propecia 1mg tablets

  130. austin pool removal
    austin pool removal on April 23, 2021 at 10:47 pm

    Do not mistake a goats beard for a fine stallions tail.

  131. JamesBrant
    JamesBrant on April 24, 2021 at 12:11 am

    ventolin price in india: cheap ventolin – ventolin generic
    generic for propecia

  132. JamesBrant
    JamesBrant on April 24, 2021 at 5:32 pm

    tadalafil generic india: tadalafil – cialis pills
    buy propecia without prescription

  133. JamesBrant
    JamesBrant on April 25, 2021 at 10:36 am

    finasteride generic: propecia – propecia prices
    propecia uk

  135. GeorgeJouro
    GeorgeJouro on April 27, 2021 at 4:48 am

    best ed treatment pills: natural remedies for ed – treatment of ed
    ed meds online

  136. RaymondLox
    RaymondLox on April 29, 2021 at 12:04 pm

    northern pharmacy canada ed drugs – india pharmacy mail order
    canadian pharmacy levitra value pack

  137. RaymondLox
    RaymondLox on April 30, 2021 at 5:32 am

    canadapharmacyonline erectile dysfunction pills – tadalafil canadian pharmacy
    canadian pharmacy no prescription

  140. Williamteere
    Williamteere on May 4, 2021 at 6:44 am

    buy cialis online at lowest price: erectile dysfunction pills – cost of tadalafil without insurance

Submit a Comment

Your email address will not be published.