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Q: China stock market?

After the real estate slow down, many people is jumping on the stock market for what now seems a free meal. Now, leaving aside that there's no free meals to begin with, how many people currently trading, on the total, do you think have the minimum knowledge to operate with consciousness on the financial markets?

5 years 1 week ago in  Money & Banking - China

 
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They are the exact same people who, a matter of months ago, had blind faith into China's real estate market and thought that it would "never go down because the government is backing it up", this tells you a lot on who they are and what they know about trading and investments.

 

Now they use the same arguments on the stock markets, "the government will never let them fall", we shall see. Chinese are gamblers culturally speaking, but that does not make them good gamblers or winners.

 

Most if not all of them will sell at the first sign of downturn, that might be interesting. Two possible issues in such situation, they are allowed to sell and everyone else should brace for impact, or selling is banned and they lose everything.

 

China might be ruled by commies but it is no exception to the rules of good old' capitalism. Can't lose more than 10%? Li Hejun is crying in his Royce right now.

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5 years 1 week ago
 
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Ha! My wife's uncle just invested, get this, one million RMB. He's an idiot who can't even shop, cook, clean or do anything on his own (not bad for 37 years old, eh?)

He's another one who cant afford to lose anything and now sits and watches the market minute-by-minute. Adding all these dreamers just means that traditionally stable markets will also get unhinged by 'fraidy cats' who dump at the first sign of a down-turn.

 

Time to invest in phase-plasma rifles with a 30-Watt range.

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5 years 1 week ago
 
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@ironman...  for stock 600227 can u suggest a near minimum amount to get started with?  also are the services of a broker necessary ?  xiexie

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5 years 1 week ago
 
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I'm not following in detail Shanghai Stocks Exchange, except news from it on ZeroHedge, US market analysts/investors website. '0-H' sounds a bit 'jealous' to me, but here are few last week's interesting reads, if anybody care:

 

http://www.zerohedge.com/news/2015-05-29/chinas-nauseating-volatility-co...

 

http://www.zerohedge.com/news/2015-05-29/tale-two-bubbles-china-vsnasdaq

 

I'm out of active trading, but if somebody wants to learn more on important indexes and charts reading, here is US stock traders website:

 

http://stockcharts.com/school/doku.php?id=chart_school

 

Remember:

1. never invest any amount you CAN'T completely afford to lose.

2. always exit position, if stock drops more than 8% of your entry point. '8% drop below your entry point' signals wrong entry point, and you'll most likely lose more, if you'll remain in the position. Cut your losses, and move to another stock, by carefully studying chart, 'entry point' especially.

3. 'never invest 100% of funds available'. This rule could also be called 'Live another day'. Careful trader will invest only 30% of the whole amount available. Rest of the funds are needed for correcting mistakes at entry point, as if stock goes down (what it will!), you must have funds available for averaging down or lowering the value of your entry point. If stock goes up, you'll have plenty time to add to your winning position.

4. For correct entry/exit points follow, or I should say 'My fav indicators at charts reading are': 'AD line' 'RSI' and 'volume indicator'. I also use BB overlay (Bollinger Bands).

More on reading stock indicators/charting here:

http://stockcharts.com/school/doku.php?id=chart_school

5. You won't be able to successfully learn charts reading at the same speed as I'm learning Englo ---> s- (pun)

6. Once you're reading charts, don't use too many overlays. I usually use max 3 overlays for visible/clear chart reading. More overlays just confuse the whole pic.

 

Watch movie 'Snatch' 2001, especially Brick-Top's monolog, when he's explaining where saying 'as greedy as pig' comes from.surprise = ''Don't be greedy!'' 'Better bird than rabbit' thingy.

Don't fall in love with stock, because you're doing great!

Always take your profits, and never look back, i.e. move to another stock.

When you're exiting position, you should also exit it the same way as you entered: sell slowly, stock might edge up, right after you sold, so '30% of the whole stock position for sale' and so on.

 

Disclosure: 'I'm Non-naive English Teacher in China, not certified stock market adviser, and my post should be taken with (is it grain or ....?) bucket-s of salt.

'add-it': 'Once when I was really (should I write 'really' twice?) pissed, I made US police swallow the gum instead of chew it, as it was planned by futurists....I can't answer any more Qs on that 'sub-e-ject'!

I will admit, I can be very 'un-natural' when pissed. It's my mum's fault, I know-aa-aa.' Matthews& Phish Live in NY 'All Along (they must watch) The-(ir) Watchtower', and me 'LOL-my-ass-ss-off'.

I wonder, does it sound bad in Englo, if one say: 'I told u so'?. I promise 'no more Qs on my part!'

'No reason to get exited.......' I was born like that-o-oo'

My I-tunes sports new tu-ness: 'Once Upon The Time in The West' by Di-re Straights. I like solo guitar here---ooo

We move on...'fu-get' the history as Chinese say...

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5 years 1 week ago
 
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They are the exact same people who, a matter of months ago, had blind faith into China's real estate market and thought that it would "never go down because the government is backing it up", this tells you a lot on who they are and what they know about trading and investments.

 

Now they use the same arguments on the stock markets, "the government will never let them fall", we shall see. Chinese are gamblers culturally speaking, but that does not make them good gamblers or winners.

 

Most if not all of them will sell at the first sign of downturn, that might be interesting. Two possible issues in such situation, they are allowed to sell and everyone else should brace for impact, or selling is banned and they lose everything.

 

China might be ruled by commies but it is no exception to the rules of good old' capitalism. Can't lose more than 10%? Li Hejun is crying in his Royce right now.

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5 years 1 week ago
 
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According to an article I read, the recent China stock market rush is due to an urge from the Uncle Xi.  It seems the recent downturn in the economy has gotten him worried.  The state can only do so much to spur consumption.  Why else would millions of Chinese mainlanders suddenly start investing in the market?  They were told to.

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5 years 1 week ago
 
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Probably nobody is the answer to your question. Have you watched Mathew mc Conaghey's   Speech in "the wolf of Wall Street "? No mf knows if  shares are going up or down.  Least of all stockbrokers. Most traders lose money when trying to turn it into a career. I just like having a punt

 

i find it hard to get good information. I bought shares in Oxus gold (Lse). I cannot really any information about its history online. Inside information is the best way

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5 years 1 week ago
 
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I read an article on that topic
http://www.chinafile.com/reporting-opinion/media/shanghai-stock-market-bubble-finally-bursting
Don't mind the title, the article is really about the current trend to go on the stock market and "invest". It seems a lot of investors are ayis who got money through land requisition from local authorities. Of course, they invest the ayi way : listening to whatever other ayis says, don't ever bother doing proper research about the companies you invest in. They will listen to a few success stories and will never ever wonder how many fails for one success. With such a mentality, imagine the fantastic opportunities for pump-and-dump schemes.

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5 years 6 days ago
 
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http://www.zerohedge.com/news/2015-05-31/chinese-stocks-are-surging-weak...

laowai --------> China’s Ministry of Finance may set additional quota of 500b-1t yuan for local governments to swap debt into municipal bonds, according to people familiar with the matter.

Plan needs State Council approval, according to the people, who asked not to be identified because deliberations are private.

Finance ministry said March 8 govt would permit as much as 1t yuan of high-yielding debt to be converted into municipal bonds.

 

 

  • CHINA TO HOLD LIVE-AMMUNITION DRILL IN YUNNAN PROVINCE: XINHUA

During the exercise, all types of aircraft without approval shall not enter the airspace, into Gengma county, vehicle Zhenkang border exercise area, please obey traffic control personnel. Exercise does not affect normal production and life of the masses. To listen to local people and local governments participating troops command, exercise control without approval shall not enter the area. Exercise until further notice.

  •  
  • So... bad data, more stimulus, and warmongery... BTFD =
  •  
  • Buy The Final Dipangel, in other words:
  • 'extreme caution while entering this market'

 

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5 years 6 days ago
 
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http://www.chinadaily.com.cn/business/2015-06/02/content_20888561.htm

 

What happened about a century ago somewhere overseas when also the shoe shine boys were talking stock...?

 

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5 years 3 days ago
 
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Awesome. Like the whole market, each one, is a big proposition bet. I gotta watch this. 

Have fun kids! I will be in dollars. Yea, I know ahahahaha

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5 years 3 days ago
 
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http://www.zerohedge.com/news/2015-06-04/overnight-chinese-stocks

 

Overnight (yesterday) trading in China in all its BTFD glory...

 

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5 years 3 days ago
 
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OT - a bit:

 

http://www.zerohedge.com/news/2015-06-06/gold-64000-–-bloomberg’s-‘china-gold-price’

 

Q: 'Did i tell you, or what did I tell you?'

 

A: '.....and certainly, I wouldn't trust to financial advice of poster on eChina Board...'  statement of Mr. Donkey.

 

and another A: '.....Rmb will be good as toilet paper in the future......' of another poster here-ooo on thread 'Can Rmb replace US$ as Reserve Currency'.

I can't recall Riri's answer.........LOL

'Where have all cheerleaders go.....?'----> B. Dylan

 

And now, c&p from your 'favorite' 'Zero-ba-na-na-Hedge':

 

Gold At $64,000 – Bloomberg’s ‘China Gold Price’

- Bloomberg Intelligence suggest gold-backed yuan see gold at $64,000 per ounce
- “Chinese gold standard would need a rate 50 times bullion’s price”
- As China-U.S. relations deteriorate, gold-backed yuan possible
- Dollar and financial and monetary dominance of U.S. at risk
- U.S. and China war of words continues to escalate
- China rejects U.S. hegemony in Southeast Asia
- Currency war to escalate

surpriseangel

Bloomberg is US Financial publication, blocked in China.

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5 years 1 day ago
 
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http://www.zerohedge.com/news/2015-06-08/when-it-rains-it-pours-shares-c...

What bubble? 

One business model that’s easy to understand is that of Hong Kong-listed Jicheng Umbrella Holdings Limited. As you might have guessed from the name, the company designs, researches, manufactures and sells plastic umbrellas. That’s really all you need to know to appreciate the following chart which shows that shares have risen some 2,700% since February 13 (also note the annualized figure)... 

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4 years 51 weeks ago
 
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http://www.zerohedge.com/news/2015-08-02/citadel-unit-barred-trading-chi...

 

Define irony: for the past 7 years, Wall Street's worst kept secret is that Citadel, the world's most levered hedge fund, has been the NY Fed's just slightly more than arms-length enforcer of market stability, by which we mean spoofer, buyer and otherwise "plunge protector" in the equity and E-mini futures markets. The secret got even less "secret" when of all the possible hedge funds blogger Ben Bernanke could have gone to, he picked the Chicago HFT powerhouse, confirming the cozy and tight relationship between the Federal Reserve and the firm which has been increasingly linked to market manipulation not only in equities but bonds and virtually all other asset classes. 

Which is why Citadel must have been shocked to learn late last week that China had suspended trading at a brokerage account used by Citadel in China. 

When the news first broke last Friday, we asked, somewhat rhetorically, the following question:

China Suspends Trading at Citadel Unit Brokerage Account: Nikkei. Are they suggesting the U.S. PPT is China's Dump Enforcement Team?

— zerohedge (@zerohedge) July 31, 2015

Today, the WSJ had more detail on the surprising snafu involving the Fed's favorite market intervention vehicle, confirming that Citadel said trading in one of its China accounts has been suspended, as Chinese regulators battle a steep slide in stock prices.

The reason: China’s securities regulator said Friday it has launched a probe into automated trading and has restricted 24 stock accounts suspected of influencing stock prices. The government didn’t name any of the companies behind the restricted stock accounts. Citadel said Sunday that one of its accounts was among them. 

Of course, China's crackdown on foreign trading is not news, and had been reported about a week ago: in its endless list of scapegoatees, China had decided that blaming "evil", if faceless, foreign sellers would be just as effective to boost confidence in a rigged market as accusing "malicious" sellers. That remains to be seen, but what is surprising is that while Citadel is best known for propping the US market higher, China is suggesting that the same NY Fed Plunge Protection Team extension was implicated in the recent downward move, using "automated trading" or otherwise. Surely, China's regulator would not utter a peep if like in the US, Citadel had been used to support stock prices.

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