it's narrative what's fooling you and make you win or lose.
They create for you narrative with narrative they create business and with that business they take your money
They want your money while you think you gona win you will lose.
For example now there is war In middle east many oil long contract buyers bought "oil longs"- they bet on oil long but then war will be over oil drops and they lose.
Not just the oil but many other narratives to fool you to take your money.
You touched on some really interesting ideas. about how storytelling can change our perceptions And an investment decision was made that felt right at the time. But it turned out to be against us. It's easy to get caught up in the emotions surrounding events such as geographic crises or economic trends. And companies or markets often leverage these stories to guide behavior.
For me, it's important to know when a story has an impact on you. rather than providing details or complex details. It is important to take a step back, do independent research, and carefully consider whether the narrative is truly rooted in sustainable thinking or if it is a temporary action intended to drive the business.
In situations like the oil example you mentioned. People who place bets based on short-term events, such as wars, can be very risky if they don't have an exit strategy. Or don't think about things How will things change when that's over? It is a reminder that even in the market Having the basics and thinking long-term is important to avoid temporary hype.
For example now there is war In middle east many oil long contract buyers bought "oil longs"- they bet on oil long but then war will be over oil drops and they lose.
Both parts of this sentence are wrong.
In the second part you are just describing any market, people speculate and make a move to try and make a profit. That's not a narrative, there is no fooling going on and nobody is taking anybody's money. It is a market dynamic.
Precisely, there's no fooling around and nobody is taking anybody's money, it's all about market dynamics. At any point in time there'll always be demand and supply, if someone is ready to sale then there'll be someone who is ready to buy. If you think that the seller has fooled the buyer by offloading their commodity at a high price, you'll never know whether price will continue to increase after a crisis is over. The forces of demand and supply is basically what determines price. For any products that is in high demand, any news, good or bad can only affect it's price on the short term.
An example is Bitcoin, some people are offloading their bags now because they're tired of waiting for price to skyrocket. So we wouldn't call the investors that are accumulating more Bitcoin fools, the market can turnaround at anytime. Even during the peak of bull run people are still buying, these are speculative markets, you never really know what price will be in the future. If your product is a valuable asset like Bitcoin and crude oil, then you can hold and wait for price to pump before selling. We should only worry about selling off perishable goods at a lose before they spoil so that we won't be at a total lose.
Sure enough, the market momentum is crucial. The short-term movements may affect the story, but But the biggest issue here is the supply and demand. As you said, Market sentiment and timing play a great role. No matter whether it's oil, Bitcoins or any other commodity, these markets are so unpredictable that that even a seemingly insignificant event can cause a major swing in valuation.
Take the case of Bitcoin. Bitcoin is known for its volatility, and thus people always try to time the market. Some will sell during a downturn because they get frustrated. However, most who stay longer tend to believe that it holds intrinsic value and future growth. The same holds for oil. Change comes from short-term news at times, but usually, long-term fundamentals override those to prevail in the end.
In the long run It's about knowing what you're investing in. And understanding that in this type of market, Patience can be as precious as time; everyone's approach will be unique. But learning to understand more clearly how the market behaves and not dwelling on history will help you make better decisions.
Someone things oil will go up and buys oil longs, and someone things they wont and does not buy them - so what? Its a personal choice whether to invest in something or not based on what the present situation is. That what we all do, be it stocks, bonds, bitcoin, our own education and jobs and so on.
Either of the above two might be right, thing is we dont have a crystal ball to predict what might happen. Did anyone predict a pandemic to happen? Actually some idiots kept on saying it might happen and one fine day it happened.
Even if the war ends nobody knows what position oil will be in and people are putting their bets on it. Most of them have side bets to cover losses, mind you.
It's a matter of personal choice and risk tolerance. Just like oil, stocks and even Bitcoin, we all make choices based on the best information available at the time. Except there are no guarantees. You're right, nobody can foretell the future. Whether it be an epidemic Weak markets or wars - these are unpredictable things. which causes the market to speculate.
People tend to hedge their bets by allocating money as you said. To reduce losses if something goes wrong. It's a game of probability. And every investor assesses risk differently. I think the key isn't just to blindly tell the story. But you still need to understand that the market can create coins. Having a diversified strategy and being prepared for volatility is very important. Whether you bet on oil, Bitcoin or any other asset.