For me it is (in part) that the markets crystallise all that is going on in the world, and expectations for the future. By following the markets I feel very much in touch with global events of all kinds. If I go on holiday and can't follow the markets at even a summary level, it's er... rather like other people who cannot go on holiday without their mobile and/or internet, and/or e-mail and Facebook. It goes further of course, my entire working life has centred around trading/investing, it's not an exaggeration to say I find it fascinating, occasionally beguiling, but highly stimulating.Strong Eagle wrote:What's the point in watching the market chase its tail day to day? Some days it goes up, some days it goes down. On the whole, the market enriches with increased valuations over time.
I know people who have the opposite view, like my father who has absolutely zero interest. He asks me similar questions.... typical answer... 'It keeps me fully occupied and pays the mortgage'. I ask him why he plays golf, especially considering how much it costs, and I still don't get it at all
Here we go again Funny, I thought this week's woes in Europe were down to goddam ^&"&"E%"^% engineers at VW. One article I was reading this morning suggested this is a death-blow to 'Germany Inc'. I'm not persuaded of that, but it's certainly a very big deal. Another interesting article (today's Daily Telegraph) tied it into Corporate Social Responsibility (CSR)... how VW ranked near the top of all the league-tables for CSR and yet this happened. That ties back into Enterprise Risk Management. Is VWs emissions trick their version of the faulty O-ring that ended the space shuttle programme...Strong Eagle wrote: Sure, the market seriously loses value from time to time, mostly because of the gaddamn %^&*^%$* bankers and investment houses but it comes back. We are well beyond the huge decrease in 2008 in case you haven't noticed.
Traders trade, that's their job. A trader pays to hold a position in his portfolio, so it has to justify itself by performing. If he works in say a bank he pays for the internal funding on a daily basis. Quite similar... I pay margin on a daily basis. Even if I'm not margined I have opportunity cost.Strong Eagle wrote:And the second thing, is far too many participants in the market behave irrationally. There are the day traders and options traders that think they've got a leg up. And there are those that react irrationally to price changes, selling when they should hold.
I remember once seeing a trader getting a bollocking, roughly, 'You're a trader not a goddam investor, so get out there and TRADE!'
I agree though, trading can be a battle against human nature. Perhaps that's one of the things that make it challenging/engaging. If you witness say a stock halving in price, and it's screaming BUY! at you, it is still a very difficult thing to do IMHO. In such a situation I find the emotions and step-by-step thought process and rationalisation fascinating, even quite amusing in how predictable it is, a bit like holding up a mirror... and yep seeing the same old face again hehe...