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Monday, March 3, 2008

Post on TheBullTrader.com

After reading one too many retail investing geniuses post comments on their god haven, mine too :), regarding the continued depression of SIGM's stock price; I have decided to write some "inspirational" teaching advice.

Do not be a hero: In other words, the stock market is not real life. Maybe one out of every thousand times something falls from the sky randomly, it will be a "falling knife." It could be a quarter your high friend flips at you because you're Jewish, or a nug - most likely the object that came from the sky is not a falling knife.

Do not be a hero, DO NOT try and pick a bottom. I have been burned SO many times trying to be a hero. The problem lately with retail investing, particularly uneducated folk who consume Cramer (I like him), but more importantly Financial News on Corporate-owned media networks, is that trends are followed too strongly. People sell rapidly, and people accumulate rapidly. Albeit, institutions have the master numbers, secret codes, power, knowledge, X amount of years of history in the business, and can profit to the nth-dimension. In a healthy market it is easy to become complacent. However, notice how even when Cramer talks about how volatile the market is, he is constantly recommending new stocks. Market manipulation I speak of is NOT NECESSARILY due to evil people, but as I have seen in so many world and social conflicts, structures of institutions are the overarching, not inherent, powers that guide human behavior and affect human weakness. This is why I could never decide between Psychology, Sociology, or Anthropology (Evolution).

So this is what I posted:

"Recession? Media is a powerful tool. The world markets should not be hit so heavily by what the non-ignorant have learned in the recent years, and especially over the history of the United States of America, how powerful an influence the dwindling-recession ridden country, which functions fine, for middle-class media consumers’ concerns, has on the stock market.

Maybe I am at fault for investing in ADR’s and not buying foreign stock but market manipulation, not “investor panicking” plagues retails investors’ minds. How can this amazing company go down? How could Apple, the future of computers, stock go down so much? To make sure you guys know I am at least partially right, I will assert that Apple is going to go down further, with the market, $100, maybe even $80."

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