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Thought-Provoking Email from Reader

By -

I am republishing it here with his permission.

There is no such thing as value in the markets. If that's true then you
are doomed to fail in epic events because you are relying on the lack of value to dictate a top in the markets.

As
soon as you accept the markets stand for nothing real, other than a few
mind numbing obvious purchases like coke and pepsi you
will have more success.

If
the markets were working properly then stocks would move very slowly
except in epic failure or rare upside surprises. The real idea of the market
is using public funding to allow a good idea to grow. Once the idea
grows the company has an obligation to pay back its public
investors dividends. If the market really worked this way most stocks would climb and fall incredibly slow.

Since
it does not and most companies exist on an illusion of candyland debt
it is not the job of the market player to rely on research and
statistics, including technical analysis which relies heavily on the
assumption of value. If there were no perceived value there would be no studied patterns.

Once
you accept the lack of value and come to terms with a market empty of
investments you realize quite simply you are involved in a shell
game. Humans have played games since they started using tools. It is
normal. The only way to play this game is to bet on illusion and the emotional
hopes people place in those illusions. Market players want one of two
things. To be rich or to be famous. Those are powerful desires
in a finite life.

Betting
on the illusions that power those dreams is the key to success. Whether
or not the perceived illusion has real value doesn't matter.

The market is ruled by emotional child like gods that will do anything
to maintain or increase power. All you have to do is read greek myths to
understand how the market works and whom is behind its larger destiny.
That's why relying on the essence of a rule set like TA is a false
religion.
There is no one true god of the market, only childish multi gods making irrational decisions.

The
last issue compounding the difficulty in being an independent market
player is inside action. There is no stock that escapes buying by people
with illegal knowledge. This means you and I as independent players
have to rely heavily on luck, hope and intuition. Therefore out biggest
job as successful
marketeers is money management. We have to make sure our plays are
consistent and never heavily weighted to any particular side.

The hunt is for out performers that break all rule sets and exist
as special anomaly. Luckily I continue to hunt well, catching squirrels
while leaving the mammoth alone.

hope it all goes well,

– Oulous