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I say things on Twitter

3/31/08

It's not difficult to make money in the stock market....

...all you need to do is arm yourself with facts and then let the idiots rant on the other side of your trades. Then afterwards say, "Thank you for giving me your money" and go live on a classy beach resort somewhere. Easy.

Here's an example of someone with more money than financial sense. To be honest, I don't know how much money the guy has (and i don't care) but it'd still be more in relative terms than the brainpower used to put his note together. Whatever; check out his biography on site for a laugh and find out how much he thinks about himself.

Ok, no more ad-hom..what's the point here? Well, the dude basically cherrypicks a single fact about the Brazilian Real, then notes the BRIC-to-US market hedge has fallen through in the last month (using, hilariously, a two year chart as evidence...this probably cos he tried setting the bar at 6 months then at 12 months and found the facts didn't fit his theory) and from this comes up with the line he wanted to get out all along: "...Commodity currency countries are not a fun place to be right now..."

I mean, where do you start with this BS? He chose to highlight the one month performance of the Braz Real and not the 3 month (click all charts to enlarge)
or the 12 month
Neither was the Yuan mentioned, but here's the chart, just to be helpful
As as for commodity countries, how's the Chilean Peso doing, dude?
Ready for the Peruvian Sol?
Or even, amazingly for some, the Venezuelan Bolivar Fuerte? (parallel rate version, of course)
Oh, and just while we're being clear, all the countries mentioned have record currency reserve levels right now. I could also start talking about the relative performance of the local stock markets compared to the trainwreck in the "non commodity currency countries"....

....but you should have got the point by now.

But the most important part of all this is DON'T DISCOURAGE THE IGNORANT. Let them blab on about things they know little about, cos there are a never-ending stream of badly informed sheep ready to listen to ego-warriors and who will then oppose the well-researched investor. In your mind's eye, just imagine a whole queue of people waiting to give you their money. Why should you say, "No...you're wrong...it's cool now.....enough.....keep it for yourself" when these dudes keep insisting? After all, they'll either give it to you or to somebody else. What you can guarantee is that they'll not win at this crazy investment game until they've worked it out for themselves.