The Stockmarkets- “Much ado about nothing?”

October 19, 2005

I have been trying to be a professional trader for the past one and a half years and if there is one thing that I have learnt is that nobody can predict the market in the short run and in the long run only blue chips do well. The kind of monitoring that CNBC does of the market is actually required only by a professional trader which can be done with real time software. Most traders know that markets are totally unpredictable

Then one wonders that what CNBC is doing is “Much ado about nothing” All the lovely looking women and all the analysts propounding theories without giving much reasoning. Its as if the entire lot of them were standing over a small baby and trying to predict what it was going to be when it grows up. The analysis of company results is somewhat valid but sometimes the shares do not move even though the company performs and vice-versa- its like a commercial hindi film used to be; makes no sense.

Everybody hovers around the market as if it were a small plaything
And monitor it the way a meditator monitors his breathing
Nobody can predict mkts whether it is rising or taking a beating
All deliberations on them are “Much ado about nothing”


One comment

  1. No Professional Trader ever tries to predict the market. He just goes with the present trend. Just ask any professional trader. His first priority is preserve capital, minimise the losses and let the profitable trader run till such time the trend changes. There is an old wallstreet saying, ” Never fight the tape”. I suggest to every stock market traders, investors to read a couple of zen parables every day. they are short, precise and to the point. Never go against the current, flow with the current. it will take you to your destination. if the destination is against the current, please get out of the river and walk down to your destination.
    You are right, hiren. CNBC is “Much ado about nothing.” But then you have a whole lot of idiots out there. they need to be fed, CNBC just does that, like monkeys. they are never quite. Their analysis will definitely lead to paralysis. It leaves the investor confused, stop him from acting wisely. Managements, manipulators, Mutual funds all like to be in the limelight. Its more of a mutual admiration club.

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