Keep Running...

  Common sense is not always your friend. Sometimes you just need to move with the flow.

  When your car slides, the best option is to accelerate along the direction of slide and gain control.When you fall at speed, its best to support the momentum than to stop it. Same is the case when you are trading the stock markets.

  The free market back-bone implies that at any moment, the masses have the best knowledge and the latest information, and the system is in its most efficient state; rather it would be oscillating about that state. At every moment, there would be one predominant leader with a growing group of blind followers defining that state. Soon the leader would be treading a side lane due to the ever changing personality of, the most effecient state of the system. Thus, for a moment the leader and his group would be treading a wrong path. This is called an arbitration oppurtunity in the language of stock markets. Some one in the system would soon bag the oppurtunity and become the new king, killing all other aspiring kings. The system continues with a new king and his new followers, every other moment. So, the best way to trade the markets is  to follow the king; and not try to be the king.

  However, had everyone followed the rules of the system, the world would have been very boring and mechanised. Isn't breaking the rules a sign of life? It is! although sometimes at the cost of self damage. These life indicating aspirants for the throne think, they are smarter than the system. They buy on a lower bottom for they see it as a discounted price, and are apprehensive to buy on a higher top as they fear the ultimate top has reached. Essentially, they are trying to catch a falling knife with bare hands!

  In the markets, there isn't an ultimate top or bottom. Either can be breached. What works best is being a sheep; JUST FOLLOW THE FLOCK. Sell when the market makes lower bottoms and buy when it makes higher tops. This means that you will always be following the latest king; hence always treading the golden path.