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VIEW FROM THE MONEY MARKETS |
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Philosophy
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Successful investing, trading or any other kind of speculation in financial matters is nowadays not so much a question of education, family connections or inside knowledge, than a proper sense of strategy. As most participants know, the use of derivatives in all main forms (i.e. options, futures and cfd) and the huge amount of money generated by Mr Greenspan's policy of "conundrums" in the interest market has turned the patterns and behaviors in the finance world upside down. Add to this the power of generated trading programs and it is easy to realize that the old way of dealing and investing is over. Volatility and unrealistic deceiving opinions kill these once wise philosophies, as well as all the snakeskin sales people and bank executive managers who do not really know how money works but are highly trained to advance in their careers by firing hard working people. I believe in technical analysis, but being aware that there is no perpetuum mobile I also firmly believe in logic thinking and experience in the movements of currencies and other assets. Though whatever one's method is, there is always the inevitable, which "can never ever happen". And just because you cannot calculate this "never ever" event it makes fun to invest and trade, not least because you see the bigmouths die and the serious ones survive.
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copyright Alexander Clausen 2009