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Re: GKG post# 2436

Wednesday, 03/05/2014 12:19:25 PM

Wednesday, March 05, 2014 12:19:25 PM

Post# of 9532
Read "Extraordinary Popular Delusions and the Madness of Crowds". The section on bubbles and financial manias gives a historical context to the never ending series of manias that investors get swept up in. You are living in the middle of one right now - MJ stocks. One of the defining features of a bubble is that no one knows how big they get or when they pop. Some of the most brilliant thinkers in history have lost huge amounts of money in this type of mania.
Fortunes can be made in bubbles, just make sure you are only trading in the direction of the major trend, for FSPM, the major trend is up! Get out when the trend turns down. Never average down, or you can lose everything you made.