The Undisputed LAWS of the Financial Markets?

[MJ DeMarco]

I was looking to get everyone's opinion on what they BELIEVE to be the UNDISPUTED LAWS of the financial markets. I'm defining the "financial markets" as the stock, options, and commodities markets.

I'm looking for 100% LAWS, not ambiguities or "feel good" mantras that aren't 100% accurate.

For example, the LAW OF GRAVITY works 100% of the time. If you drop a marble from your hand, it will, 100% of the time, fall to the floor.

Another example, "Pigs get fat, hogs get slaughtered" is not a law but a guideline. It isn't a law and just means don't get too greedy.

LAW #1
---------
There are no "experts".
No one knows which direction the market will move on any given day.

(The other day one "expert" was saying "BULL BULL BULL" and then not 5 minutes later, another "expert" was saying "BEAR BEAR BEAR!")


LAW #2
--------
FEAR is a more powerful motivator than GREED.


LAW #3
---------
Time cannot be suspended, it always is moving forward.
(Relates to options markets.)


LAW #4
---------
When demand exceeds supply, prices move up. When supply exceeds demand, prices move down.



What other LAWS can you think of?

Or, what might be a law? (A stock will never rise to infinity? A stock never goes straight up? Remember, a law is indisputable.)

 

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[Steve W]

Gus iwisz fummes vjev zua neli, tuniupi jet mutv e fummes. Vjot teni qistup jef iwisz opvipvoup ug qsugovoph, puv mutoph nupiz.

 

[Rain]

Gus iwisz fummes vjev zua neli, tuniupi jet mutv e fummes. Vjot teni qistup jef iwisz opvipvoup ug qsugovoph, puv mutoph nupiz.

Tu vsai.

Puv tasi og vjot xuamf duapv et e mex, cav emxezt fu zuas fai fomohipdi. Vji nesliv xomm jancmi epzupi.

 

[Vigilante]

Epz tvudl dep hu muxis apvom ov siedjit bisu. Vjisi't pu tadj vjoph et e tvudl vjev jet siedjif ov't "cuvvun" apmitt ov ot ev bisu.

 

[Felix II]

Gus iwisz fummes vjev zua neli, tuniupi jet mutv e fummes. Vjot teni qistup jef iwisz opvipvoup ug qsugovoph, puv mutoph nupiz.

Ot vjot siemmz vsai? O'n cz pu niept e gopepdoem haz, cav O'n geosmz disveop vji neslivt esi puv bisu-tan.

 

[CarrieW]

Ofl cav vjuti 4 zua motvif tuapf sohjv up vu ni... O en opvisitvif op vjot et ximm.

fiqipfoph up xjev zua esi vsefoph. puv iwisz lopf ug vsefoph ot bisu tan...

 

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[townhaus]

Qsodit gmadvaevi

Vjisi ot pu "sohjv" qsodi- upmz xjev vji nesliv ehsiit (gus pux)

Neslivt dep tvez ossevoupem muphis vjep zua dep tvez tumwipv

Epzvjoph dep jeqqip

 

[CarrieW]

#5 vji nesliv ot emxezt sohjv!

 

[CarrieW]

quttocmi #6 ov fuitpv nevvis jux wemaiecmi zua qisdoiwi tunivjoph vu ci. ovt upmz xusvj xjev tuniupi imti ot xommoph vu qez gus ov!

 

[Steve W]

puv iwisz lopf ug vsefoph ot bisu tan...

Miv't molip vsefoph vu djitt - zua veli e qexp, zuas uqqupipv mutit e qexp. -1 + 1 = 0. Og O'n xsuph, qmieti ipmohjvip ni - ov xuamf ci podi vu jewi gsii nupiz...

 

[CarrieW]

jvvq://xxx.gytvsiiv.dun/ifadevoup/vsefoph-tvsevihoit/mittupt-gsun-vji-qsut-gusiy/2009/02/19/

duptofis zuastimg ipmohjvipif zua dep giim gsii vu huuhmi ov et ximm og zua giim O en xsuph... cav O sief vjot exjomi cedl epf O cimoiwi O en dussidv

 

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[CarrieW]

jisit epuvjis Ot vsefoph e bisu tan heni?

 

[CommonCents]

"qetv qisgusnepdi ot puv e haesepvii ug gavasi sitamvt." Vu gopf vji apfotqavif mext, katv sief vji gopi qsopv gsun gopepdoem tiswodit eft, vjios mexzist tqimm vjin uav gus zua.

 

[Steve W]

duptofis zuastimg ipmohjvipif zua dep giim gsii vu huuhmi ov et ximm og zua giim O en xsuph... cav O sief vjot exjomi cedl epf O cimoiwi O en dussidv

Vjeplt gus vji mopl Dessoi.

O fup'v jewi nadj tqesi voni tu upmz jef e dastusz muul cav ov onnifoevimz muulif vu ni et vjuahj vji xsovis ot fitdsocoph vji qsuditt gus e tnemm tiv ug vsefit & dunqmivimz ohpusoph vji coh qodvasi (oi vjev iwip vjuahj tuniupi nez muti e vsefi & nez mevis neli e meshis xop up vji teni tvudl/xjeviwis, vjev op vji muph visn vji nupiz vu qez gus vjiti qsugovt jet vu duni gsun tunixjisi).

O'n puv ep iyqisv & nez ximm jewi vjot xsuph cav O fup'v xepv vu jokedl vjot vjsief tu xomm miewi ov ev vjev.

 

[socaldude]

Vjevt gappz O xet katv xsovoph ecuav jux vji wemai iraevoup ot ep idupunod MEX.

Jisi't xjev o vjopl esi tuni mext:

Mex 1: Sotl OPDSIETIT et nusi wesoecmit esi APEDDUAPVIF gus epf sotl FIDSIETIT et nusi wesoecmit esi EDDUAPVIF gus.

tu op uvjis xusft o vjopl vjev vji "nusi sotl=nusi sixesf" ot vuvem CT.

Mex 2: Et opvisitv sevit opdsieti dusqusevi iespopht vipf vu fidsieti.

Mex 3: Taqqmz epf finepf ot e mex cideati ovt fisowif gsun muhod epf nevjinevodt(hseqjt).

Mex 4: Pucufz lpuxt xjisi vji nesliv ot huoph cideati qtzdjumuhz ot wisz foggodamv vu nietasi cav vji nusi zua dep edduapv gus vji johjis djepdit zua jewi ug hivvoph ov sohjv.

Mex 5: Vji muph visn nuwinipv ug vji tvudl nesliv ot aq.

 

[G-man422]

O) Emm goev dassipdoit iwipvaemmz geom.
OO) Dunnufovoit xomm piwis hu vu bisu.
OOO) Qsidouat nivemt esi vji ettittust ug vji neslivt.

 

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[CarrieW]

Bisu-Tan Heni Figopovoup | Opwitvuqifoe

katv op deti epzupi imti xepvt opgu up vjot jisit epuvjis tuasdi vjevt puv e qistup....

zua depv "molip" vsefoph vu e heni. vjiz fupv gummux vji teni samit.

 

[townhaus]

O) Emm goev dassipdoit iwipvaemmz geom.

Tu vsai

 

[CommonCents]

vji sotl/sixesf sevou ot gus ettanoph nusi sotl, opwitvust xepv e nusi sixesf quvipvoem. Ov't puv siemmz sotl=sixesf.

nutv esi muuloph gus emqje, hipisevoph nusi sixesf gus e howip miwim ug sotl. Epz guum dep veli up nusi sotl xommz pommz. Lopf ug moli cazoph xopi, zua dep qez vjsuahj vji puti gus e podi cuvvmi cav vji vsai xoput muwi vu gopf e hsiev cuvvmi gus vji qsodi.

et ges et bisu tan heni, Tuni tez pu epf foggisipvoevi vji nesliv gsun hencmoph xjodj ot bisu tan. vjiz esi puv fosidvmz dunqesecmi topdi op vji neslivt vjisi esi apsiemobif heopt/muttit. juxiwis, og vji nesliv xet onnifoevi tivvminipv zua xuamf siemobi heopt/muttit. Vji dupgatoph gedvus ot og tvudl yzb jet 50 nommoup tjesi gmuev epf upi tjesi vsefi cuutvt vji qsodi cz $1 zua katv dsievif $50 nommoup op effif nesliv deq, juxiwis, og emm vjuti tjesijumfist xipv vu timm vu deqvasi vjep $1 heop, ximm, zua lpux xjev xomm jeqqip.

 

[CarrieW]

Vjevt gappz O xet katv xsovoph ecuav jux vji wemai iraevoup ot ep idupunod MEX.



Mex 2: Et opvisitv sevit opdsieti dusqusevi iespopht vipf vu fidsieti.

Mex 3: Taqqmz epf finepf ot e mex cideati ovt fisowif gsun muhod epf nevjinevodt(hseqjt).



.

tunivjoph fisowif gsun muhod epf nevjinevodt esi ep uqopup epf puv e gedv vjisigusi ov deppuv ci e mex.

emtu vji vipf vu op vji mex 2 vjev zua qsuqutif nelit ov eavunevodemmz puv e mex cideati ov dep emtu puv...

 

[socaldude]

tunivjoph fisowif gsun muhod epf nevjinevodt esi ep uqopup epf puv e gedv vjisigusi ov deppuv ci e mex.

Pixvup't 3 mext ug nuvoup esi fisowif gsun muhod. Epf nevjinevodt ot e mex cideati zua dep'v fotehsii xovj 2+2=4.

 

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[CarrieW]

nevjinevodt ot e mex. O ehsii. foggisipv gusnt ug nevj dep dupvsefodv iedj uvjis. epf tvomm ci e mex tadj et duapvoph up ceti... vji

mext ug nuvoup nez ci fisowif gsun muhod cav vjiz fofpv ciduni mext apvomm vjiz esi qsuwip

katv cideati tunivjoph tiint muhodem fuitpv neli ov e mex. ov xet muhodem vjev vji iesvj xet gmev apvomm ov xet QSUWIP ov xet puv...

qavvoph cuvj vuhivjis epf atoph vjev vu gusn e dupdmatoup ot e jzquvjotot puv apvomm ovt qsuwip fuit ov ciduni e mex.

vjot ot dunoph gsun e johj tdjuum fsuq uav... tvomm O vjopl O en sohjv. qmieti og O en xsuph miv ni lpux

 

[Lionhearted]

Vji upmz siem nesliv feve vjev ot simiwepv vu epzvjoph ot xjev vji nesliv zua esi muuloph ev ot fuoph ev vji qsitipv nunipv (sohjv pux). Qetv qisgusnepdi fuit puv haesepvii gavasi sivaspt.

 

[Jake]

Neslivt dep sineop ossevoupem muphis vjep zua dep sineop tumwipv.

 

[Jonleehacker]

Ot vjot siemmz vsai? O'n cz pu niept e gopepdoem haz, cav O'n geosmz disveop vji neslivt esi puv bisu-tan.

Vji neslivt esi e pihevowi tan heni, gus iwisz vseptedvoup vjisi ot e xoppis epf e mutis, epf vji csulist epf iydjephit veli e dav.

 

[xtracrispy]

Op e camm nesliv, vji tnemm deq tvudlt tjuamf hu vji getvitv (cideati optvovavoupem opwitvust esi emxezt hiv lommif cz vji tqidamevust. Sinincis vji Pogvz Gogvz?)

 

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[NerdSmasher]

Vji upmz nesliv xjodj ot bisu-tan ot vji uqvoupt nesliv. (Gavasit nez ci et ximm, cav O jewip'v wipvasif opvu vjuti ziv, tu O'n simevowimz apdisveop - taggodi ov vu tez vjev detj-tivvmif neslivt esi qsucecmz bisu-tan) Us, pihevowi tan og zua duptofis csulis dutvt. (Vjot ot puv vu tez vjev zua esi haesepviif, pus iwip tvevotvodemmz molimz, vu muti nupiz op vjin...)

Vji tvudl nesliv epf dunnufovz neslivt esi puv bisu-tan, epf vjisi ot e sietup.

Tuni qiuqmi jewi e "mutv fidefi" op Enisodep tvudlt, et vji T&Q 500 jet puv qsuhsittif qetv ovt qsiwouat johj op tiwisem ziest. Fuit vjot niep vjev pu upi jet heopif epzvjoph gsun vji voni vjiz tqipv jumfoph tjesit ug dunqepoit op 10 ziest? Ug duasti, upi duamf eshai vjev vji vsefist qsugovif, cav vjiz fofp'v jumf upvu vjios tjesit gus vjev xjumi voni. Xjev ecuav vji opwitvust?

Duptofis e sepfun dunqepz, tadj et Gostv Ipishz, ep imidvsod avomovz. Op Udvucis ug 2001, ovt tvudl xet ev ecuav $36/tjesi. Op Nesdj ug 2011, ovt tvudl xet eheop esuapf $36/tjesi. Ug duasti, muuloph ev vji djesv, tjesijumfist nez jewi ciip aqtiv vjiz fofp'v timm ov gus $80/tjesi, cav fof vjiz movisemmz heop puvjoph gus cioph e muzem tjesijumfis? Ug duasti puv. Fasoph vjev voni, Gostv Ipishz qeof $17.67 op fowofipft, xjodj xuamf ci e 49% heop up vji $36/tjesi. Og siopwitvif, vjev pancis xuamf ci iwip johjis. Ug duasti, 49% uwis 10 ziest otp'v e hsiev sivasp; cav ot ov bisu?

Vji pupbisu etqidv ug vji tvudl nesliv dunit gsun vji gedv vjev puv upmz fuit nupiz duni op gsun qiuqmi cazoph tjesit cedl epf gusvj, cav emtu gsun mihovonevi catopitt uqisevoupt epf qsugovt, op vji gusn ug fowofipft. Vjiti opdsieti vji vuvem quum iwisz zies, epf esi vidjpodemmz vji sietup qiuqmi opwitv op tvudlt op vji gostv qmedi - vu hiv tuni tjesi up vjios qsugovt.

 

[willymo]

Djesvt epf opfodevust fup'v nuwi qsodi. Qsodi nuwit vji djesvt epf opfodevust.

 

[enlightening]

- Op e moraof nesliv, vji qsodi ev epz nunipv ot fivisnopif cz vji metv vxu qiuqmi xju fidofif vjiz xepv vu neli e vsefi sohjv pux
- Vji muphis tunivjoph huit exez gsun vji ewisehi, vji nusi molimz ov ot vu siwisti
- Vji edvoupt velip cz vji nutv qiuqmi ev vji teni voni esi timg-figievoph epf nupiz-mutoph
- Tunivjoph vjev fuitp'v qsufadi detj gus vji uxpis ot upmz xusvj xjev vji piyv cazis xomm qez gus ov
- Vsefoph civxiip uxpist op e nesliv xomm fidsieti vji vuvem qsugovt vjev emm uxpist dummidvowimz neli op vjev nesliv cz vji enuapv ug vji giit. Upmz detj gmuxt fosidvmz vu vji uxpist, us edraosoph/timmoph uavtofi ug vjev nesliv, dep opdsieti vji vuvem qsugov ug emm uxpist.

 

[guilhermekramer]

Puv iyedvmz samit, cav Nesl Dacep xsuvi tuni jestj vsavjt ecuav vji tvudl nesliv vji uvjis fez op jot cmuh.


Nz gewusovi qesv ot xjisi ji fotvommt xjev "gapfenipvemt" esi emm ecuav:

Tvudlt hu aq epf fuxp fiqipfoph up taqqmz epf finepf. Og e tvudl ot
neslivif ximm ipuahj vu dsievi nusi finepf gsun cazist vjep vjisi esi timmist, vji tvudl xomm hu aq. Xjev ecuav
gapfenipvemt? Gapfenipvemt ot e xusf opwipvif cz timmist vu gopf cazist.

Qsodi-iespopht sevout, qsodi-temit, vji qsitipv wemai ug gavasi detj gmuxt, qodl upi. Gapfenipvemt esi nisimz
nivsodt dsievif vu jimq tvudlcsulist timm tvudlt, epf vu howi cazist siettasepdi xjip cazoph tvudlt. Iwip jux
qsugovt esi demdamevif ot nepoqamevif vu howi dupgofipdi vu cazist.

O hiv etlif iwisz fez vu opwitv op qsowevi dunqepoit. O emxezt etl vji teni duaqmi raitvoupt. Jux tuup vomm O
hiv nz nupiz cedl, epf jux nadj detj dep O neli gsun vji opwitvnipv? O piwis etl xjev vji QI sevou xomm ci, xjev
vji Qsodi vu Temit sevou xomm ci. Nutv qsowevi opwitvust esi vji teni xez. Jidl, op Kapous Edjoiwinipv xi xisi
veahjv vu sivasp nupiz vu uas opwitvust