When I was just a boy, my mother always talked about the 1929 stock market crash and she would say many people jumped out of windows and killed themselves because they loss a lot of money, I wondered for years how everyone could have been so stupid and lost their money, how come they were not warned, how come they did not see it coming ahead of time.
This question stayed with me until I was in my 20`s and started studying the 1929 stock market crash and I just had to have the answer before I could go on with my stock studies.
How could so many smart people loose their money ? I would not want to invest in stocks until this question was answered. I figured that, if it happened once then it could happen again, so I set out and searched for answers and finally I found the answer.
There is only one possible explanation...! the public was lied to and the public believed the lie, let me explain
The head of the new york stock exchange was put in jail in 1932, Merrill Lynch stock brokers was sued in 1932, do you think that was for nothing ? All part of the 1929 stock market crash.
The analysts of that time was saying "buy-buy-buy" all the stocks you can and never said "sale" even as the stocks were falling down big time, they was saying buy more and "HOLD THEM FOR THE LONG HAUL" while they were selling all the way down.
Only the public loose money, never them. The big mutual funds, institutional and commercial types are the buyers of around 70% of most stocks and they can move the stocks up or down when they want too, but they need someone to sell their shares too. The public usually gets in, when all the hype is there, when the stocks are near the top, they hear all the news and hype and want in, its planned that way... I bet you did not know that...!
A famous man was getting his shoes shined when the shiner said to him, "mister did you hear that everyone was buying coca-cola today! its all over the newspaper", The man rushed home and called his broker and said "sell all my coca-cola shares" and when the man`s friend over heard him say that, he said "sir why did you sale when everyone is buying" ? he replied... by the time everyone on the street hears the news,its time to sale.
It`s also strange that in 2001-2002 bear market, when many people lost a lot of money in the stock market, Merrill Lynch was sued again and had to pay only 100 million, thats not a lot of money for them and also the head of the new york stock exchange had to resign but with 140 million bonus before he left office, is there a pattern here, almost like 1929 stock market crash .
Once again all the analyst were saying "buy or hold" according to Weise research. It`s a shame that when you trust the professionals with your money, they mis-lead you this way.
So it comes down to this, if you want to make money with your money "please don`t let the broker`s or professional handle your money", it`s time to learn how to trade and manage your own money and if you follow these techniques you will be able to cut losses "quick, and let the winner`s run" and be responsible to your own money" see it yourself with charts !
Remember never let your stock fall below an 8% stop loss, and never let it fall below the 100 day moving average and if it does get out! The 100 day moving average is the most ever, maybe to be more conservative the 8% stop loss is much better.
Investor`s Business Daily recommends the 8% stop loss and he has done more for the public trader and investor than any living person.
Here is a quote from a well known man of that time about the Stock market exchange :
The Stock Exchange (in German: Die Börse) is a book written by Maximilian Weber, a German economist and sociologist in 1896. Note that the original edition was in German and the title can be translated as "The Stock Exchange".
During the 1890s the stock exchange had become the symbol of capitalism in Germany.
During 1894-1896 Weber wrote a number of essays about stock exchange, in which he argued against the popular view that the stock exchange was a fraudulent enterprise designed to abuse "the honest working people."
