mark1982 wrote:Ainvos wrote:because the don't want to be stuck holding the bag. i think, maybe, you are upset because you were out-competed. others dropped their prices in time to sell off their product.
thats my issue realy.... why the hell would you sell it at dump prices while you still could fetch 60-70? you should had seen how fast rubber was placed on market and a sec later it was gone.... not only there screwing thereself with those dam low prices but they screw others aswell who got the stuff placed at that price (i am 1 of the many left on market with the crap now). i just dont get the people why they keep doing this....
Hey Mark,
This is a closed model of what's happened in real life every month on bourses.
What's your upset with it's the human reaction and emotions that make a price to move ( sometimes frightening moves) not REASON.
That emotions are mainly GREED and FEAR.
If you have a stock of something and see prices falling every second you SELL next second. If you dont , after 5 seconds you wished you would be sold that, because now price is down than 5 seconds earlier. Now multiply this idea hundreds of players who all are thinking same reasoning you think They are scared they will lose money in next 5 seconds and sell ... all of them...
Now, the price movement. Where they put the order for selling? Answer: lower than last offer, so the price will go down.
all that I just explained is from the supply side of market.
now the demand side. the demand is comprised by the bidding from active players in the contest. of course, they want to buy cheaper and sell product to contest, this way hoping that nearest ranking competitors will not send their quantities, and so he will step up in rankings.
but the contest participant faces some issues in those 5 seconds:
- he may have a LIMITED quantity of CAPS in hand and after he sends some product to contest he gets back only 2 caps, you know, so the caps he has are really decreasing fast.
- he sees the direction the price is going ( down) and that might stop him to buy at that decreasing price until price stalls for few seconds.
now there i really hope that you learn from this game for real life, as my esteemed colleague mentioned earlier, and i repeat this happens all the time into worlds bourses ( NYSE, London, Tokyo, Frankfurt) only theres not caps losses the min attraction there, but US DOLLARS, AND EUROS, and BRITISH POUNDS, etc ... and hundreds of milions of them every single day... lost by some and gain by others. you should be happy you're not a trader there, BTW.
And I happen to be in the industry itself, so im pretty know what im talking about.
and , do you mind the language you use... well said there... at a poker table you would sweeping the floor after first burst of anger at a weak hand.
take care
