Trading, in this context is the stock trading, is the process of sale and purchase of shares which the aim is clear: the benefits. Very simple in fact, buy at low prices and selling at high prices.
When we can buy shares (which according to us) in the low price? especially when people sell because we assumes, based on a variety of analysis and rumor / news, the stock prices will continue to go down so they decided to sell their shares even though the loss in condition.
When we can sell the shares (which according to us) in the high price? especially when the people assumes the stock will continue to rise.
What causes a stock price rise? Should be because the company that we buy its shares got advantage (based on fundamentals). But the reality is not so right? development of a company are not always in line with the share's price movements. Why?
There are a variety of reasons, one of which is due Cornering practice, per-Bandaran Indonesian language. Bandar ( the one doing cornering ), who can be either institutional or individual, go to market with only one goal (the same as us) the profits (money).
How do bandar get profits? Bandar has a large amount of funds so that they can drive / control the market direction. If we are smart enough we then follow the bandar's movement, if the bandar selling their stocks we sell and buy when he buy. But sometimes bandar loss too and the result is we loss too. How can bandar loss in trading? Because there are many bandars (either big or small) in the market and they (sometimes) don't move in same direction. First, bandar buying shares with a systematic way so that stock prices are not (many) moves higher, after a stock collected as planned, bandar will blows some (good) rumors and make some actions to rise the stock price is significantly (with the systematic way also of course), usually, increasing of the price will be catch our / market attention especially with rumor (positive) about the company, for example: the company will perform some expansions, give big devident, and so forth, and then immediately affected so many people involved in buying shares, the more the buy the stock prices are rising, the stock prices rise more and more people are interested in buying that shares. Until this stage, bandar simply let the prices continue to rise, and sometimes doing some actions that aim to keep prices still rising and more and more stocks are purchased. After reaching the target price bandar began selling his stocks (as usual, systematically), after bandar got his profits according to his target, those who buy stocks in high price left behind confused, which is the choice are: cut loss (definitely loss) or hold (possibly loss as well).
Now if we succeded in following succesful bandar's movement, automatically we got profits too right? Where the profits came from? From PEOPLE THAT LOSS, either directly or indirectly our benefit derived from their loss. In bearish time, more people are loss in trading, if we got profits from trading in bearish time, then we should already know that our profits derive from the loss of others.
We often hear news of those who suffer great loss in trading, even they commited suicide because they could not bear the facts that their money all lost and still have huge debts because maybe they use margin trading. We can argue that it is the risk of loss when doing trading but according to my personal view indirectly or not we also cause them suffering. so that's why i quit .. Hypocrites? up to U.. :)