Herd Mentality and a Refreshing Blog

A couple of days ago, while writing Pre-Market Opening thoughts - Trading Nifty- 14 Jul 2009 , I wrote the following lines:

""
It seems therefore that we may have a uptrending day - the problem with my statement is that almost everyone may be thinking the same - where is the edge then?

""

This reflects an agony I always feel when I write - am I saying something different or am I just following the herd? We will return to the importance of this chain of thought some other time, but I must say when I read blogs - especially related to the market moves - I am struck by how many of them are saying the same things.

Over this weekend I accidentally came across a blog that I liked a lot, primarily because the freshness of its line of thinking and its similar preoccupation with search for what is not obvious.

The blog contains a presentation (webinar) which is excellent - it was presented on June 7 ( not that old ). The presentation can be found in a pdf document here. As a summary there are three points from this PDF that I found very striking and am quoting here.

• "A GREAT EXERCISE Investors should do regularly is to ask you: What's the one thing that nobody expects to happen?"
  
• "I try to make it my business never to get too bearish or too bullish."
• "There are hundreds of ways to analyze markets. The key is chose yours and respect others"
  

There are many other gems here. Any serious student of market will do well to read the above pdf document and the blog.

The blog, by Deepak Singh, can be found here: http://www.stateofthemarket.net/blog/.

Another refreshing thing about this blog is that it does not try to sell you market calls, treats you as a thinking individual and leaves you with a lot of ideas.

I hope you will ENJOY the articles as much as I have.

If you have any comments please write to me at stockmarket.methods.in.madness@gmail.com

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Disclaimer: The above analysis is just that - my analysis. If you choose to trade on the basis of this analysis, you will be solely responsible for the outcome of the trade - profit or loss. Please keep in mind that trading and in particular day trading is not for the novice and there is significant risk of loss of capital in trading.