Trading Nothing could save Aussies from their poorer feeling!

GFCI has let Aussies get enough lessons. Yes, it should be true Logically but not true really and necessarily! Most of Aussies have no ideas what their mistakes were and then they just have tried all to get all from the rear mirror for future without consciousness that future needs the vision and self-denial and self-restructure. They tend to rush from one way to another way in the two-way market highways or free ways to the war, the war for grand party and glory or the contrition war to consume every drop of their bloods(financially not cruelly to kill them).

We all believe we are best with the best ideas about the market and have the best systems to beat the enemies down but few really know where his enemies hide. If you read around in trading forums and you are conscious enough, you would find too many great and high IQ boys work too hard to use their computer systems to fight against themselves.

Too many know how bad market sentiment is but too many also try too hard for the short cut. Too many declare that they have excellent mechanical systems to pick up the right signals for right time to shoot every day! Do you have any clue why Hitler could lose the war? Germany armies were the best one technically for the war. Why did the best in tech could not win the war but let the weak ones become powerful enough to landing on the beach of Normandy? Did you believe the war hub didn't evaluate each of pieces of data and try to find the best place and time for launch the attacks?

However in the market, too many believe timing is stupid since they forget it is one matter you could not identify the exactly right time but you should not be absolutely wrong around the best time to launch your attack. What are you talking about the attacks, but you said you would never be warriors again? Yes, but have you seen any war hub would send the service and rescue teams into the valley of death before the warriors have been consumed except the wound-rescue personals?

All of retail market warriors don't have war 101 and they tend to jump into the field when they should run away such as the peak before GFCI. They should stroll into the war place when all of warriors have given up their resistances and use the spades or basic tools, if having the modern gold scanners, with great prudence to scan where they could get the deserted gems and gold. However most of warriors are not so clever or they never think they could get gold and gems in the ruins without life risks.

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They do worry the bloods which have been shed enough. They worry about the mortgage of their houses without guts to do things for their houses. They worry about the remote smoking in EU, US, and China even over there the people feel much better than those in no smoking Australia. No smoking let them worry more than smoking since if you have nothing you don't need to worry but work hard.

Aussies needs all of the remote smoking gone and put their houses and asset into the waters to be sure no smoking around them at all even immersing in the water could damage their brains. So XAO rushed into GFCII and wait for GFCII smoking in home.

It seemed XAO would like to wait for all of the world become a better place if not heaven. In this mood, XAO would sell when no smoking and having smoking remotely. As anyone in the market once XAO gets its mood, it needs shocked to get out its mood, good or bad!

It is a time you could not be happy and would try all to make you feel bad! A really depression and hopeless! The resource booming before GFC and this 28-month consolidation has consumed too much cheers and hopes.

Who could laugh loudly now? It tells me we are really at the rock bottom. In my home town, winter at coldest time could be -30 C degree and all are preparing for the spring since it should not be too far. Aussies seem not know this natural law since no winter here.

They tend to put their heads into the cold water from the freezers when they feel cold. It usually tell them the winter could be forever in EU, China, and US. You know the damage to the brains when you put your head into the frozen waters but Aussies don't know.

Aussies enjoy the feeling that we would be in winter forever. So Nikkei let XAO feel the world is cold as their frozen waters and drags XAO down today even US and EU felt better. People in winter are usually intelligent. People whose head in the frozen water tend to be stupid. No brain at all!

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Of course it is crazy too if you have ever put your head on the fire to heat up! XAO just put his head on the fire before GFCI which burnt a lot of its brain into ashes. Now it could not do anything else but into the frozen water!

I(XAO) could not lead the world into GFCII and then I would try all to drag all of Aussies in the cold water as long as I could! If all of Aussies could put their heads into the frozen water we would have real feeling about winter at -30C degree. It is fun and doesn't need any high tech to beat these fools down. It is funny to see these fools call these stupid and those genius. I don't play the tech game with these fools. I just play the game to beat them psychologically. They ain't instinctively different from the lemmings. If you do some R/D about the history of these fools and you tell me their precedents are lemmings I would not be surprised. Their systems? If they are in bipolar disorder, they just kill each other with any advanced systems they could get. However these fools as a whole are much better than before even some fools cry for the sky always. If they don't make better I would not have chances to beat the retail warriors at my will!

In my(wdongli) home town no one dare to do so since it would mean a sure damage to your brain and cause death painfully! All try to warm them up in winter, get a fire stove or central heating stream into each house, even put all of food out of the window but when people go out they put heavy cloth and hat to protect themselves. Aussies need some heavy death rate to shock their heads out of the frozen water, which should be a sure result as most of retail market warriors missed the train of V-shape recovery.

 

Recover plans or plan B for banks

News said tHE top four Australian banks have been ordered to prepare "recovery plans" how they would survive a major event worse than the last global financial crisis. The time line is the end of the year. The banks are required to outline how they would survive a "tough" situation that went beyond raising capital, or receiving emergency funding from the Reserve Bank.

When too many people put their heads into the frozen water to cry for the pains, it seems good for all of responsible people to think as Main Street should do, get the plan B for GFCII or worst scenarios without giving up their business.

As the owners of the retail warrior service businesses, you have to get the plan B before next boom becomes bust. It is not a matter for one day but should be finished before next April.

1. You have to get some bond type of asset including your labor value for good enough cash inflow at all of the time.

2. You have to understand when the cash is king. You have to learn how to turn capital gain into cash before any crash of economies, financial systems, and market.

3. You have to manage the asset allocation between bonds and stocks and be sure they don't fall down together. You have to learn how to get the buffers or margin of safety for your life and your loves.

4. You have to get enough cash reserve before bust forces the Aussies' heads into the frozen water again. You have to learn never to suffer in bipolar disorder anymore.

5. You have to learn how to identify the rock bottom of the market not absolutely wrong. You have to know your head could not put into the cold frozen water and onto the wild fire when the whole market have crash each other in stampede.

6. You have to be alerted when your head is cold and hot as that of the market crowd. You have to learn how to invert, invert, and invert against the market sentiment. You have to remember Soros's model about the reflexive relationship among economies, market sentiment, and the collective forces to reinforce the trend in one direction extremely.

7. You have to know crash is quick but not a day matter. You have to know boom needs more time for hopes and reliefs. You have not to be cheated by your biases under some great words: such as "buying and holding forever" or "stop losses!"

8. You have to understand all of ideologies and systems physically or perceptively have their own catches. Absolutely right is never a problem but absolutely wrong at any given time could put you onto the slaughter table setup by Mr. Market.

9. You have to know you are in the war not a grand platform to launch the rocket for anyone to be on the Moon or Mars! In the war you need responsibility, intelligence, prudence on the system errors and human errors. The great or crap systems could not beat you down but your foolish errors from our instinct would open the door for your hell.

10. Do believe we need to read a lot while pondering about the reality. We need to change our behaviors as civilians or warriors. We need new latices of mental network for this transition. We could not finish this transition by any twisted words or pretending we are genius.

11. We have not to be arrogant and allow our arrogance to use our ignorance against ourselves. We don't have any enemies else but our own. XAO has its own as its enemy. Wdongli has his own as his enemy only!

12. Keep to be self and environment aware. Don't put our heads into the frozen water. Don't put our heads onto the wild fire.

All in all we need plan B for next bust! How about existing bust? Damages have been done and you have to use all to catch up with the lessons. If you waste your pains and refuse to be right up in the night for Plan B, you are insane and stupid!

Why don't you start to take a spade? I want but it is a matter for last defending line if this crash turns to be GFCII while EU and China crash onto ground together. Why do you say GFCII would come while EU and China? EU is a trigger and China would follow to drop down.

1. China drops down would reinforce the world to believe it would be flat onto the ground even I don't believe a economies with 1.4billion population just have a decade chances to move upward, which has huge inertia or mass.

2. China had been onto the crash down road since 1700s. It had taken about more than 300 years. Market bias is very powerful and it is a process to self realization process.

3. However I just has another 30 - 50 years as maximum in the market. I don't want to fight against any market sentiment but use it for my profit.

4. My paper profit had been destroyed by my biases not my spade. At moment I still feel urgency to get the lessons than a spade. I do hope I could be lucky enough and then before I have to take a spade, bang XAO comes back to 5000.

5. I don't know seriously but I do know XAO's head is in the frozen water, which he makes in his freezer!

6. However I had a lot of time to fine tune myself to take a spade happily if I really need.

 

All would focus on where China goes soon!

Lemmings as a whole could not think about future but it doesn't mean some clever leaders of lemmings would not build some gloomiest or brightest light to tell where the false cakes would go. There are clever and sensible lemmings who could see the risks and rewards and would try all to shock the lemmings change the rushing course.

A very basic and serious question is what's the next and most risky spots to destroy or make the false cakes. However don't expect these clever lemmings would wise and ponder anything logically in balance. The would not ask the question where the lemmings could go for better future after the cliff have been filled by the dead bodies of the lemmings. They would follow what consequences they rush hard to question. They would perhaps question where the false cakes could be destroyed!

Sooner or later once EU debt touches its worst rock bottom. No lemmings would have more interests about it until the EU debt shock them enough again. They would shift their focus to China and question where Australia would go. It is very straightforward. Everyone else has been beaten down to the ground, right? Australia is a open and small economies which has only one way to go, become worse.

China should go to the hell too since it is ridiculous that all of the world else suffered the house credit crisis and debt crisis but China just enjoyed the GDP more than 9%. It has a central or dictatorship government. It has never told the world what happen in China enough. It has so many people corrupted with all of the devils of the fundamental capitalism. You can see the videos about the ghost houses everywhere in China but you could not hear any officials tell us openly no one should trust them!

OK, it is too hard to get enough data to tell you how bad these devils in China but you just need to think if US and EU could not let the bubbles developed and then you should get 99% confidence that China could not avoid to burst into pieces. If China bursts into pieces do you know how would we hurt in Australia? We put too much money into the holes for better return but what if we get the holes but just the gravels with some 1% of gold element around the holes and ports?

You cannot put yourself on EU, US, and advanced economies, and burst China would make a lot of Aussies' houses where ghosts haunt around! It is not joke but some future realities. China is a place to destroy our real or false cakes in the sky!

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Logically and rationally we could expect all would start to watch out for China's freak economies. If China could not tell XAO it could land safely, XAO would be crazy in bipolar disorders for days, months, and years. No one could change the lemmings' rushing course and would send more lemmings into the cliff, their graves!

What are you doing for this new possible lemmings' rushing movement? Psychologically I am ready even financially I am not ready! I would hold my believe the huge body with huge mass need more powerful forces to change the course. I hate gambling now but I could not give up my visions since lemmings' new movement!

I would invert, invert, and invert to get a good protection and leave room for my future! Don't forget lemmings need a goal collectively, cruel or peaceful one. If you are not the same kind as the lemmings you should have different views, course to run under the Sun, and enjoy your work and reward.

Of course you should not jump into the cliff before the lemmings move toward it, which is my lesson between October 2010 - April 2011, where I run toward the cliff passionately(I guess you understand there are thin air between greed and passion and could define them under all of conditions, which I still could not say I have). In somewhat human sense, I acted as a leader of the lemmings to the cliff even I didn't completely lose the human sense.

I feel shamed about myself and will never deny it! I should be a mate of men not lemmings.

 

We all make money mistakes

Do you make money mistakes? Yes I do. How about others? All of them do too. It is even very harder to overcome since we have to work continuously, spend time with family, friends, and our mates. We have little time to spend to correct our money mistakes. Who can stay focused on money matters these days? Not many. Actually not too many even think about they could make money mistakes. We all say we don’t have time. But we also feel upset when others put the time about money mistakes.

Get the time for your money mistakes.

To avoid or correct money mistakes you need to put a lot of time on them. We tend to get quick solutions. However it never works as we expect. What can you do? I want to get schedule fun into my work on money mistakes.

I chose to quit and become full-time market student. I do found even so it is still not good enough since I found it is very hard to change my behavior. Whom are you define what you do about your money mistakes. Some just are not the animals who could deal with money properly. Actually the modern educational systems have create too many high IQ but insane market players.

You make a lot but never spend in means. You make some profit but you don't have ideas what popular money mistakes are and then you become greedy and fearful to burn your profit and capital. Too many get little profit for a while and lose all in a second. We could say it is because we don't have a system but is it all?

Do remember it takes time and may be much longer time you expect. It is kind of work to rebuild your brain and behavior about money matters. We cannot avoid reaction and definitely we need to be responsible for money matters.

Budgets: powerful but tedious

Who don't the word budget in the market? Who really understand the budget really in the market? Too many think you have to save every pinny and tight your mouth to limit the food or don't go to cinema in your life time. It is not budget but crime to yourselves. Life is about options. Some money you have to spend and some you should not.

As a market player you have to manage the cash inflow much bigger than the cash outflow. You have to think about the capital allocation between bond or bond's type of investments and stock or stock type of investments. You have to know how much you need to keep your life style and promote your life style within the means.

Get right and good budget should be your direct goal every year and all of your market actions and income from your labor value have to be big enough for this goal. You should be motivated by this direct goal to get your job down.

If you get the direct goal in mind, you would know when you should collect your profit and put your money out. You would be less guess for the fads and quick gratification!

Cost run and cash reserve depletion for no return

Market could not let all of your days sunny day. So people said we should stash cash for a rainy day. What bond and bond type investments for? They could create a rainy day fund to help us out if we lose a job or need some money just to plain handle the unexpected.

Problem is we come to the market at very beginning not for working but quick money. No too many retail market players know how to do their job in the market. We are greedy and fearful when we see what just happen. We tend to be greedy when we get the quick money. We tend to be fearful when we lose fast.

Greed makes the cost run and cash reserve depletion and fear makes no capital gain for future. When both work on us, we are in hell. All we know we should be organized, disciplined, analytical, and self-reliant. But few get the plan to deal with greed and fear.

Greed and fear are bout yourself and what your reaction or responses to the environment. Some systems outside your minds may be helpful but to put them into a box and leave a eye on it need your mind work properly.

I don't believe "stop loss" is a pill to cue your mental problems, the cause of greed and fear.

Are you fully insured

Nothing could be fully insured. Who can insure no losses if sky falls down? If you want to insure yourself for sky falling down you are insane. We need insurance for wrong probability calculation. We need margin of safety for our human errors. We need to safe if we pick up a wrong rock bottom.

I don't say you would fail but have margin of safety is good practice in the market and for each of your shares in your portfolio. I don't say you never should put most of your money into the stock market but you have to know the things could be worse than your expectation and you may need to hold much longer for profit let alone sale on fire.

Most people ignore this very real risks in the market with over-confidence on their systems and their skills. Market is a war place. Something could change in second and your even don't have time to response.

We would make mistakes. We should be fail-safe. They are two matters and always put us in paradox. No any external system could balance these two things but yourself.

Why is it so hard to buy at rock bottom? Why is so hard to sell for profit? It is not because wrong signals or noises but we are greedy and fearful when the conditions are ready!