Are Tariffs THE END or THE BEAR TRAP

Discussion in 'Trading' started by orbit23, Apr 16, 2025.

Are Tariffs "The end" or "The bear trap"

  1. THE END - crash imminent

    5 vote(s)
    55.6%
  2. BEAR TRAP

    4 vote(s)
    44.4%
  1. orbit23

    orbit23

    What do you think?
     
  2. Who knows and who cares. Everyone's opinion on the market and future and economics is all just theory and no one has a crystal ball, except maybe Donald Trump.

    The only thing you can know and do is day trade, day by day. This is reasonably realistically within your control.
     
    Last edited: Apr 16, 2025
    zdreg and themickey like this.
  3. You sound very hostile right now. Releasing negative energy karma ions in the atmosphere. Is your trading account down by -55% or something?
     
    yg10 likes this.
  4. maxinger

    maxinger

    Are tariffs the end or the bear trap

    Strange english.

    Anyway, tariff war will not end so soon.
    Tariff war will continue for the next 4 years.

    There are all sorts of traps.
    During the next 4 years, there will be
    bull trap, bear trap, max trap ....
    Traps can cause misery. It also creates trading opportunities.
     
  5. notagain

    notagain

    Trump just raised China tariffs to 245% while pausing tariffs on some electronics.
    Once the pause is over it's 245%.
     
  6. themickey

    themickey

    Yup knows everything
     
  7. MarkBrown

    MarkBrown

    what does this have to do with trading?

    why is this post in trading section? i would think this would be better suited for psychology.

    The Brainwashing Narrative
    • Optimism and Hype: Many retail investors are continually exposed to media narratives and promotional messages that emphasize the endless upward potential of the market. This creates an environment where buying long is glorified, reinforcing the belief that stocks only go up in value. For many, this optimistic view is hard to reconcile with the concept of an asset losing value or a seemingly counterintuitive strategy like short selling.

    • Limited Education on Advanced Strategies: Short selling and other risk-management strategies require a higher level of sophistication. They involve understanding not just market trends but also mechanics like borrowing shares, margin requirements, and the risk of short squeezes—which can lead to significant losses if not managed properly. This complexity often leads to a natural self-selection where the average investor sticks to the idea of “buy low, sell high,” even if that mindset doesn’t capture the whole picture.
    The Professional Edge
    • Balanced Perspective: Professional traders are typically trained—and have learned through experience—to view the market as flexible. They recognize that both rising and falling prices can provide opportunities. For them, short selling is a tool that, when used correctly, can hedge against market downturns or even profit from overpriced stocks.

    • Risk-Reward Analysis: Professionals often conduct rigorous analyses to identify overzealous pricing. When they see stocks that appear inflated by hype, they use short selling not only to protect their portfolios but also to capitalize on the expected correction. Their strategies are based on a calculated risk-reward framework, something many retail investors aren’t equipped with or willing to master.

    • Market Dynamics and Arbitrage: Even though one might argue that one investor's loss is another’s gain, the reality is more complex. Professionals understand that market prices are the aggregate result of countless individual expectations. When a stock is violently overpriced due to hype, its eventual correction isn’t just about someone losing money—it’s about mispricing, which traders can arbitrage. They may even take positions that allow them to profit regardless of short-term volatility, using a mix of long and short strategies.
    Explaining It to the "Ignorant Public"
    Communicating this nuanced view is challenging because it requires overcoming several cognitive biases:

    • Confirmation Bias: Many people look for information that confirms their optimistic beliefs about the market. Messaging that contradicts those beliefs is often dismissed, regardless of its validity.

    • Simplification of Complex Ideas: The notion that “stocks always go up” is an oversimplification that ignores fundamental market cycles and risk. Explaining short selling involves delving into more complex financial concepts that might seem intimidating without a background in finance.

    • Emotional Investing: Retail investors often make decisions based on emotion—fear of missing out (FOMO) or overconfidence—rather than sound risk management practices. This can lead them to ignore strategies that might protect against downturns.
    One way to frame the conversation might be: "Imagine you're at a carnival where every game promises a big win, as if the only way is to bet on success. Professional traders, on the other hand, see the underlying odds. They know that for every inflated prize, there’s an opportunity to make money by betting against the hype—anticipating that the show can’t last forever, and the prices will eventually correct."

    This analogy captures the essence of a balanced view: the market isn’t a one-way street where only buyers win. Both sides of the market can profit, but only if the investor understands and can act upon all facets of market behavior.
     
    Last edited: Apr 16, 2025
  8. S2007S

    S2007S

    This is no bear trap.


    Don't be foolish.

    This trade war is just the beginning .....one of the longest bear markets in history that's unfolding right before your very eyes!!!!
     
    Sekiyo likes this.
  9. S2007S

    S2007S


    Who knows ? Who cares??


    There is literally a global crisis never seen before being unearthed at this very moment.
     
  10. Sekiyo

    Sekiyo

    My trading is doing fine as you can see.

    IMG_2137.jpeg

    Stay out of the kitchen, you little peeps, if you can’t stand the heat.

    Stop attacking people personally (ad hominem).
    This makes you look & feel miserable.
    Especially when you’re wrong.
    Spreading fake news.
     
    Last edited: Apr 17, 2025
    #10     Apr 17, 2025