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Market is nothing but a war. Continuous war between bulls and bears. All warfare is based on deception. When we want to attack, enemy should see it is highly unlikely, when we are very near of the enemy we must make the enemy believe we are far away, when we are far away, we must make him believe we are near. Similarly, market creates a situation/environment full of confusion where investors are averse to buy or skeptical to buy in the bull market (in the initial stages of the bullish trend). It creates deceptive environment, so the normal investors will remain clueless about its future course of action. Like was, when the bullish trend is at final stage or at the maturity stage, it again creates an environment which compel investors to hold the stocks even though the prices are falling.

Take a common example of Technology stocks in the year 2000. All tech stocks like Wipro, Infosys, Satyam etc has started their downtrend along with global tech crash. But the common perception about tech stocks was strongly bullish. Leading analyst, fund managers were openly vouching for "Indian tech" story. There were strong rumors that Infosys will touch Rs.1 lac level etc. etc. Ultimately at the last stage of bearish trend, investors were forced (by market) to liquidate their long positions in tech stocks at through away prices. In short, bear camp was extremely successful in creating deceptive environment in the market  and liquidated entire tech portfolios at astronomical high prices.

Any war is brutal. Stock market is no exception for brutality. It doesn't have emotions. It is ruthless. It pays handsome rewards to those who are with the market (read trend of the market), and punish severally who doesn't agree with it. Baring few professional investors/operators & institutional investors, all other investors, normally, trades in the market on their emotional swings. As emotions have zero value in the battle field, common investors are not so successful in the market. Smart operators, knows  rules of the war perfectly and as such reap the rewards in the market consistently, regardless of the trend of the market (bullish or bearish).

It is a war between bulls and bears. But it is not just a fierce battle between the sellers and buyers, there are few another dimension to this war. It is also a war between insiders and common investors, smart operators/professional investors and common investors who invest on street buzz or heard. When smart players/insiders are accumulating the stock, they never (read again, never) allow other investors to buy the stocks, and many a times compel common investors to sell the stocks instead of buying. The same is true when other camp is busy in distributing the stocks at higher levels, they never allow other investors to sell the stocks, by creating a bullish atmosphere in the market.

Spies and rumors are the essential and integral part of any war and armies ability to move is depends on these two things. Insiders, professional analyst  are spies in this financial war. Media performs the duty of spreading rumors (unintentionally). Insiders spreads the rumors and collect the vital, price sensitive information ahead of the other market players and thereby making killing profits in the market. mystock is also some sort of spy. Like any other professional we collect the information about the strategic moves of the market  and supplies them to you at a price. Your ability to win the war is based on how good the spy is.

 

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