The markets appear to have decided the virus is no big deal anymore …..

MARKETS

I’ve read the brilliant book on the guy who helped to cause the flash crashin 2010 – the book is “Flash crash” by Liam Vaughan What a read especially if you’re a trader of any kind. It’s like a thriller with lots of twists and turns.I want to be careful not to give too much away in case you know little of the story. But it’s all about how a mummy’s boy with no social skills ended up partly causing the biggest fall in shares ever from one computer in his bedroom. Indeed part of the reason the crash happened was his mum called him down for tea. In the end it’s a lesson if you let machines and algorythms take control the only winner are the robots and the rest of us can get lost. 

Overall it is a fascinating tale of a lad who didn’t even want the money and neverspent any of it and thought he was simply doing what bigger players were up to: winning money by ensuring they couldn’t lose and taking on little risk. So after reading you will feel sympathy for him. Anyway especially if you use level 2 you will be amazed at how it was all done and the main markets so easily manipulated with very little real money put at risk.

Indeed if you are going to be attending one of my online zoom seminars I will even show you on level 2 exactly how he did it.  The end of the story and what happened to him is incredible – I won’t say in case you don’t know.  Inevitably this is going to be a movie – and absolutely inevitably you know who will be playing the role of the trader – Dev Patel !

Enjoy the read!

Manipulated or not the markets appear to have decided the virus is no big deal anymore and they continue higher. (For how much longer?)

We’ll discuss this at the follow up seminar on Wednesday (June 10th)- still small virtual space if you want to come. Also there is a spreadbetting virtual seminar on June 17th with appearances from high ups from spreadbet companies taking questions live.  And a beginners/improvers session on June 24th. Mail me if interested in any of those and spend a day with me on Zoom !

The higher markets go the more likely it is a big crash is coming and it could well be just a matter of when. Because even if we are getting virus clear the damage to the economy has already been done and a lot of companies will go bust. Anecdotally – markets often go up when people think they should go down and down when people think they should go up, it is that contrary!

The last couple of days has seen an amazing rally as if the virus is done and dusted. Anyhow, I continue to follow the market trading wise but I am very wary about what to buy and continue to only be interested in companies with low debt or cash. A high risk strategy would be to buy airlines and holiday companies etc in the hope summer holidays are still on. Thing is, I can’t imagine getting on a plane this year – if you think you…