Investor act like crisis never happened

Investor act like crisis never happened

Investor act like (2000-2003) and (2007-2009) crisis never happened. Investor have very short memories and the major economies of the world are not as strong as the market world have us believe. But investor should be very careful in this very crowed trade. During market rally the investors buying the stocks as it there was no tomorrow, thought it was a good oppurtunity to gain in this bullish market.
Do you know how much money was lost in the world-wide markets in 2007-08? That total was estimated at twenty-one trillion dollars (Credit Suisse Global Investment Returns Yearbook 2009). But shouldn't the real question be: WHY was so much lost?
Market conditions turned severely bearish in 2007 and stock markets began an historic decline not seen in generations.
Most investors just hunkered down, hoping to ride out the storm. What they didn't understand though, was their investments were NOT positioned to withstand the ferocity of a full-blown bear market.
When the sell-off struck, millions of investors’ dreams of wealth, retirement and security were crushed. Retirement accounts were reduced to half in a matter of months.
"I wonder where markets are going?"
No matter whether you are a long term investor, a swing trader, or even a day-trader,..Successful investing is can often be counter- intuitive to how most investors want to trade.
You see, an average stock investor will only enter a position once they "feel" comfortable with the idea that stock markets (or their stock) are likely to keep rising. Unfortunately,  that's usually the time for FUND is getting ready sell.
To compound the problem, investors frequently end up selling in a panic after markets have moved substantially lower. Again, that's usually the time when institutional traders are getting ready to buy.
That behavior is the reason why investors keep complaining, "How come stocks always seem to go down whenever I get in...or go up when I finally get out?" Don't take it too personally, it's really a basic problem of human nature.
Everyone wants to feel sure about their decisions, and because of that, wait until they feel safe before taking action. The need for feeling sure is so powerful in fact, you'd almost have to be psychopathic to act against that impulse.
In the booming 90's, you could have picked almost any stock and watched it climb for what seemed like forever. But "forever" came to a screeching halt in the bear market of 2000. Since then, even the stocks of well managed companies have become subject to more wild, short-term swings, triggered by broader market volatility.
Blame it on computerized trading, hedge fund trading, or changes in trading regulations, but the fact that huge volumes of stock can be executed in a matter of seconds can have a dramatic impact on the markets.
That volume comes mostly from institutional traders, who control as much as 70% of the daily market volume. But that volume also becomes an institutional trader's liability...
Think about it. Fund managers cannot simply push a button and freely move millions of shares of stock without also unbalancing markets against themselves. In order to unload or accumulate positions, institutional traders are often forced to allocate trades over days and sometimes weeks in order to keep prices from moving too far from their target range.
It's that potential imbalance issue which will become your trading advantage.
Imagine what you could do, by knowing ahead of time, when big money is about to change direction. What if you also knew how long their wave of buying or selling would last?
With that kind of market foresight, all you would need to do is position yourself in direction of their upcoming trades, and let their following massive volume do all the heavy lifting for you!!!