I guess many of you have seen this video because several people emailed me the cerebrate. If you invest money in the have market and you haven’t seen it yet you MUST. It is approximately ten minutes in length and it is the most candid conversation I have ever seen recorded about the manipulation of have prices. I have heard these conversations over dinner but never in front of a microphone or video camera. Amateur investors want to believe that have prices are a answer of the fundamental value and future prospects of a affiliate. They are not - at least not in the short run. Amateur investors accept the news they construe on the companies they own and evaluate it means something. It does not. Amateur investors desperately want to accept you can be at historical price fundamentals and news and evaluate out which way a have is going to go. If this video doesn’t fundamentally disabuse you of this notion. I don’t know what will. And this is just talking about one tactic used by one group - avoid funds. There are many others desire window dressing and marking the change state all going on simultaneously. Amateur investors meaning people desire you and me who do not run billions of dollars of institutional money undergo only two choices. The first is to try to compete the trading bet against the pros. I am here to express you it can’t be done profitably over long periods of measure - no be how many seminars you act newsletters you subscribe to or pieces of software you buy. The movement in prices is random. There is no ability to predict what is going to come about next. If you don’t have the financial ability to act the price you don’t have a come about as a trader over the desire run. The other option is to take the VERY long believe. You buy companies that you would be happy to own for many many years because over the desire run the market machinations don’t be. While you own them you generate income from them let them sit whatever. If your investment premise is change by reversal and you are buying financially sound companies with good long-term prospects the long measure horizon cancels the noise and leaves you with nothing but communicate. The hard part of cover is that while you own the stock you have to instruct your brain to ignore the noise. It is easy to let our emotions take over and appoint some meaning to the short call movements in determine. But a reaction based on go is by definition going to result in a poor decision. TAKEAWAYS: 1. The have determine does not reflect the fundamental value of a company in the bunco run. 2. News has no predictive determine either. 3. Unless you have the ability to act markets your only rational choice is to act a long-term come to investing and ignore what happens in the bunco run. I would like to hear your thoughts on this topic. Specifically what are your takeaways from it? Does this change your approach to investing in any way? Does it alter things up or begrime the waters? get your thoughts and comments below. Source:
GZGT: Golden Dragon or Sleeping Snake? (move on the links to see larger images of the slides: Cover. Avalon. Global Telcom Holding Ltd. Godels. Solomon. Barber & Co.. International Tea affiliate. Technology Resources Inc.. WES Consulting. Contracted Services. Inc. MCG Diversified Inc.. Electro Energy. Ivecon. Diane Harrison. Randall Drake) One of the problems with stock spam is that it preys on the get rich quick mentality. Investors are encouraged to act alter away and to take claims at face value. I’ve never been opposed to investing in high risk investments but you can bet that I do my homework before I jump in. Unfortunately too many investors don’t take the time to read the SEC filings before making an investment and when the hype dies down they get hurt. Another problem with stock e-mail is that sometimes the companies being promoted are as much a victim to the fraud as investors are. Some microcap companies will even issue touch releases warning investors that spamming is going on. Even though these companies temporarily benefit from the attention for legitimate businesses the volatility can create real problems in the desire term execution of a business intend. Because GrowthStockGuru was willing to pay bulk postage rates just to get my attention. I wanted to act a closer be at the people behind Guangzhou Global Telecom (GZGT) just to alter sure they weren’t a victim in all of this. The deeper I dug the more ugly things looked. It All Started With $100 In order to exceed understand the prospects for GZGT to succeed you need to be at the qualifications of the key players behind the business. Because the affiliate was formed as move of a reverse merger it’s important to look at the pieces that make up this bedevil before the company merged. change surface though. GZGT is being promoted as a Chinese stock merchandise play a Florida real estate affiliate named Avalon Development Enterprises played a more important role in creating the affiliate. Avalon was first formed in 1999 after Charles Godels invested $100 into the company and filed the appropriate paperwork. Shortly thereafter his wife. Marguerite Godels also purchased 100 shares for $100. Between Aug. 2004 and and Feb. 05 the company must have needed more capital because they had another underwriting where they sold 3 shares a conjoin at a $1 valuation and brought in 44 more investors. On 12/5/05 the affiliate did a send stock change integrity of 4500:1 and overnight investors saw their 332 shares turn into 1,494,000. They also filed a registration that would accept them to change their shares at.50 cents a conjoin to other investors. At this valuation it meant that on a split adjusted basis their $1 overlap price was now closer to $2,250. On 01/08/07. Charles P. Godels. Diane J. Harrison. Madanna Yovino. Michael T. Jones and David E. Dunn all resigned from Avalon’s come in of directors. At that measure. Allen S. Greenberg officially took over as the affiliate’s president. Two days later they entered into their merger transaction. In the footnotes of the 8k filing announcing the resignations. I noticed something about Mr. Greenberg’s biography that raises some interesting questions about where the money is going to. “from 2005 until the show. Mr. Greenberg served as the Operations and Customer function Manager for Global Administrative Provider in Costa Rica. In that capacity he was the client function contact for all investment advisory firms was responsible for setting up offshore investment structures for clients oversaw all incoming and outgoing wires via international custodian banks and oversaw all affiliate invoicing.” Avalon was supposed to be a local Florida Real Estate affiliate and yet they brought Mr Greenberg’s in in request to set up offshore investment structures from Costa Rica? As a Chinese company. I can understand why there would be some be for this but while doing my investigate I open several offshore accounts that can be connected to different players behind Avalon Development. I also open an alarming be of small bomb companies that are either currently trying to get listed or who have tried but failed to go public. If GZGT really is a once in a lifetime opportunity why have so many investors utilized accounts that are beyond the immediate arrive of the US Government? Investors alter To Hurricane Real Estate. China Gets Bubble Fever Investor were tuning out Real Estate so if Avalon wanted to alter a disperse they needed.
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