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Hello Crazy Crew,
It's been a funny old week in Crazyland. The Footsie has been all over the place.
I expected shares to rise nicely when it was announced that the world banks are going to inject some money into the big system to stop credit drying up. Well, you would think so, wouldn't you? But what happened? The Footsie fell sharply. Dear or dear.
It reminded me that we must always expect the unexpected in the wonderful world of shares.
Sometimes, after hearing the money news on the morning radio I check ShareCrazy.com expecting a brilliant day - and shares actually fall. Yet when I anticipate a big tumble, all my shares rocket.
There is a reason for this sort of thing. It's not logical. But nothing in Crazyland ever seems to follow common sense reasoning.
The reason why shares rise when you might expect them to do the opposite is that the big traders try to look into the future and not the present. Everyone might be expected to sell shares on some bad news, but they often buy because they think the selling has already been done - and tide will turn in the next day or so.
The above is just a theory. But it sometimes makes me sell when others buy and buy when others sell. And to be honest, I've done rather well out of this contrary strategy. Not always, but enough times to make a living out of my trading. Rocking on!
To find out more about Malcolm CLICK HERE
UKSA is the leading independent organisation for private shareholders in the United Kingdom. It campaigns to protect your rights as a shareholder and runs educational activities for members.
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