Tuesday, December 22, 2015

Balance in the Markets

For a few to be immortal, many must die.

The stock market is like an ecosystem. 
Everyone seeks life - Only a few find it. 
And many who tread its road easily find death.

A few years of basking in the sun and moon of the markets and I
 have come to see these glimpses of  truths. And while it might 
look overwhelming, I've learned to keep things simple.

Let me try to walk you through to what I'm talking about.

Imagine a jungle with a wide spectrum of animals and plants. 
If you take away one sector in the animal or plant kingdom, 
a great imbalance would happen over time. 

For example, if you take away the reptiles you can find in that
 jungle, most especially to the snakes since most of the human race
 just hates or fears them - a rodent problem would likely arise. 
For there would be one less family to balance things out.

An explosion of the rodent populace would mean devastating
 consequences to any life form that these cute and furry beings have
 taken a liking to. And this would lead to the weakening or
 destruction of the kingdoms that interact with the rodent's meal
 - be it a plant, an insect,  or whatever these things can 
sink their little sharp teeth on. 

The eco-system where you put all the damned 
snakes wouldn't be happy as well. 

May dedicated hugot dun ah. 
(Not that I have any.)

The rodents would obviously be happy. But only for a time. 
Once there's no more food for them, they too will suffer.


Side comments : Looking back at that food web, baboons are pretty
 bad ass for eating snakes. And I had no idea skunks eat birds. 
Now i'm not even sure if this is accurate after googling. 
I am currently mind effed.


Technicians, Fundamentalists and Speculators. 

These are the three Kingdoms in the stock market ecosystem that
 bring forth balance. Take one out, and everyone suffers in one 
way or another.

If everybody were fundamentalists, we'd probably have no 3rd liner
 plays and we'll have a really slow market since no one would be
 buying until the next quarterly report. Just imagine the 
tension build up.

If everyone were trend follower technicians, nobody would be
 buying anything that's down trending and there'd be no one to
 absorb the selling pressure when things go bad. 

If there were no speculators, we'd have a hard time 
looking for super stocks.

And that's why you should always thank those who are on the other
 side of the trade or those who have a different trading system than
 yours. I myself have great respect for Gurung ulols, tipsters, 
rumor mongers, crowd herders and even 
those "feeling-jockey" groups. 

They are my Heroes. For without them, I'd have no one to
 sell my shares to. They die for my sake. 

And occasionally If things don't do well with me 
on a trade, I return the favor.

This is the reality of the markets.

There could be times when one race would reign superior, 
but nature always finds a way to balance things out. Remember the
 CAL millionaires? Where are most of them now?
How about the JAP Lovers? The FNI boys? 

Are most of them still alive and kicking? 

Some monkey out there is probably well off and doing a better job.


And while all living things created are different in some way 
or another, they have these things in common :


The need to interact with their own 
kind or to other species.

The need to consume. 

The need to rest. 


These are important patterns.
If you're a hunter, you don't go in for the kill when your target is 
on full alert. You execute when they are at their weakest. 
And you wait for that perfect moment.

It's the same with stocks and their cycles. So think of stocks as 
different kinds of animals with unique behavior patterns. They get
 introduced to the ecosystem, interact with the players, they make
 weak and strong trends, up, down, sideways then back again. 
And maybe at one point, just cease to be significant and die.

And you are a hunter. 
It is your job to either kill for meat
or capture and domesticate.

The problem with most traders and investors is the lack 
of conviction. Maybe conviction to their capacity as a person, 
 to the tool or weapon they use, which is their trading system.

This is the average trader/investor

Most come into the markets not realizing what's ahead. 
They come unprepared and defenseless.

It's a jungle out there. And everything in it 
wants to eat or destroy you.

This is what's out there...

This lack of confidence is what destroys them.
For what is an excellent trading system or a weapon
in the hands of a coward?

Sometimes I contemplate If I should just keep my trading

 systems to myself and to the people I've taught. I fear not being 
outclassed in my own system and my kind of game. 

don't want to be selfish or anything  But I fear
 the consequences of having something powerful wielded
 by idiots. I can just imagine the horror of having a perfect chart 
destroyed because of the lack of patience and poor execution.

If there's one thing nature has taught us,

 It's Balance.

If you can't adjust, the market always finds 
a way to balance you out.


  1. wow very powerful. dito ako tinamaan. thank you po

  2. Great insight Sir Z; it is true that everyone helps each other part and parcel. A commensalism relationship, and if all doesnt fall into its places, nature itself finds equilibrium.