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Do I think that I'm
worst case? NO WAY!! You only have to look back in time to see what companies, underwriters and well-established financial houses paid for software companies and internet security companies - even our beloved Telstra(using
taxpayer's wealth) suffered its billion dollar nightmares, not to mention News Corp's businesses going bust. The bigger they are
harder they have fallen: Enron, Vivendi, Worldcom and others handing over billions as if there was no tomorrow. Well now
penny has well and truly dropped as these huge gorillas fight for their survival under a pile of debt and scandal. Nope...I'm in good company. The scandals and falls since June 2002 have certainly been enough to scare me. We live in hope that we don't end up with a depression and that
losses of up to $US8 trillion at
time of writing, are finally stemmed without bringing
whole financial system to its knees.
How many lucky devils bought News Corp at $26 and how many have watched
decent to $8.46? Losing $12 billion in one year only makes people want to own it, pushing
price from below $9.50 back up to above $10.50.
The market lurches from drunken stupor to bottomless pit of despair - it's easy to get it wrong on any day!
In sharemarket trading you live and die by your trading plan - so experiment by all means but at some stage you will need trading rules to live by. The market can leave you behind. It has a way of changing faster than you can. It does its time as a bull and then becomes a bear and in
same breath will do an about face and scream to a high, leaving your position in
red, when everything you know tells you that
market for that stock should not behave that way. You keep screaming ...BUT IT'S A LOSER!!!!!! Stock punters just ignore you, pushing
dog of a stock higher, after losses counted in billions of Australian dollars and a weaker quarterly profit. Who really cares? Emotion carries
market higher until once again
profit takers come in and sell
highs.
If you have enjoyed this discussion...there's more....and
content is not specific to any one country. You can apply these ideas.
Please visit: http://www.tutorhelp.com.au/sharemarket.html
Get interactive with our Ezine "Request": 10simplerules@tutorhelp.com.au
Happy Investing, Joseph Sgro The Author

Joseph Sgro was born in Western Australia with a hunger to become a millionaire(a Wild Colonial Boy at heart).
Classroom teacher with 15 years and sharemarket trading experience of 16 years culminated in a portfolio of over $700 000 and a serious turn for the worst in March 2000.
This turn of fortune gave rise to much analysis and a desire to learn what went wrong.