The big advantage is the market falling profits scratching devices are fast and large much more!
Anyone who let him look long term graphs could easily see trends of decline are much more quick and sharp. Explanation is very simple: Fear is an emotion much more powerful and dominant desire. While investors perceive the market is relatively slow confidence they acquire shares (such as approaching frightened zebra graze in a field, when something startles her), a crisis public just fled without examining the price without looking back. For us, the more sophisticated investors, once we have identified the trend, then it does not matter if it is up or down. Scratching devices allow us to earn money on the market down just as the market rises. The big difference in descending is that gain market much faster and much more money.
What are you, would you do?
Suppose for a moment you were investment managers in the country’s largest investment and would understand all that goes a week before a big crash on the stock exchange to occur. The question is: What are you, would you do?
Assuming you believe this assessment, what really would you do? Sell the stock? There’s no way you will be able to sell more than a few percent of the stock component of individual collapse without producing your own time so short. Buy scratch? These quantities, the result will be the same (body sells you scratching cards by short selling of securities would cause the market). Waiting to sell when the crash? It would be too late and shows bad. Pray that there will be a collapse in the end? It just might work.
The only solution that fits all when you look at the interests of investors in Israel is: to educate the public invest long term and that’s what make the big investment houses. To prevent panic, they always claim to be looking at the investment over time. The big investment houses have always an interest to tell you in the long run the market up and frankly the long term really, it’s even true. But the real reason for these statements is they have no real alternative. Eventually, most of the public in Israel is administered in a number of large organizations, each with a large impact on the market too. Even if there are world champions, none of them can not escape from the market a week before the collapse, also and even if it was sure to occur.
But, the private investor’s interest does not always match the interests of big bodies. The individual investor is less interesting and more interesting to the general welfare of personal interests: first avalanche escape and return sometime later, even if the risk is missing out on more gains.
But enough talk. Let’s play with Short. Under our assumption that the declines would continue in the meantime, let’s see how it would make money?
First let’s analyze the situation: a large flow of funds standing in the doorway – large redemptions are expected to Mutual Funds, corporate bonds and funds involved. These funds hold all types of papers. So far, you may not feel great damage was done because these funds held in many very cash.
