Copycat trading creates boom/bust

[blazespinnaker]

http://www.newscientist.com/data/ima...5/26651701.jpg



This makes me think of the run on gold eagles. Lots of investors copying each other?

Look out below..

[GRG55]

Re: Copycat trading creates boom/bust

http://www.newscientist.com/data/ima...5/26651701.jpg

This makes me think of the run on gold eagles. Lots of investors copying each other?

Look out below..

That's exactly the same reaction I had when I first started seeing stories about the shortage of gold and silver coins. But then I ran a quick poll of my family and a few friends. None own any gold. None, nada, nil. No coins, bars, wafers, not even a single unit of GLD or CEF. Never have. So I am hoping that's a sign this still has a ways to go...;)

[The Outback Oracle]

Re: Copycat trading creates boom/bust

I rang the Perth mint about buying some Silver, Delivery of Silver Bars is no problem. Delivery of Silver coins is a problem. So I'd say the shortages are a bit of increased demand and low manufacturing capacity due to general disinterest over a long period.
Again despite all my ranting and raving (persuasively...like "buy some you knucklehead" ...none of my friends or family have bought either the metals or the shares...now let's not go down the 'beat the 'Oracle' up about the shares' bit again!!!:confused:

[GRG55]

Re: Copycat trading creates boom/bust

I rang the Perth mint about buying some Silver, Delivery of Silver Bars is no problem. Delivery of Silver coins is a problem. So I'd say the shortages are a bit of increased demand and low manufacturing capacity due to general disinterest over a long period.
Again despite all my ranting and raving (persuasively...like "buy some you knucklehead" ...none of my friends or family have bought either the metals or the shares...now let's not go down the 'beat the 'Oracle' up about the shares' bit again!!!:confused:

I am waiting for the newspaper editorial describing this as Peak Coins or something like that. Complete with appropriate charts showing demand going vertical, quotations from noted authorities gravely explaining how the world is doomed because of the impending permanent and unrecoverable collapse of supply of gold and silver coins, a quip from a Democrat blaming it on the Bush Administration, and a retort from Rush blaming it all on Indian brides.

[tombat1913]

Re: Copycat trading creates boom/bust

That Little Creatures Pale Ale from Perth is worth it's weight in gold if you ask me. Or was it Brisbane?

And in a moment of immaturity I'd like to point out this is my 69th post.:p

[zoog]

Re: Copycat trading creates boom/bust

http://www.newscientist.com/data/ima...5/26651701.jpg



This makes me think of the run on gold eagles. Lots of investors copying each other?

Look out below..

Interesting how the negative effects are more severe than the positive effects. Herd mentality = no real convictions about whether your choice was correct, so people panic on the way down.

[blazespinnaker]

Re: Copycat trading creates boom/bust

Interesting how the negative effects are more severe than the positive effects. Herd mentality = no real convictions about whether your choice was correct, so people panic on the way down.

Yeah, it's a pretty fascinating graphic. My thoughts are that with every run up in a stock, I'd like to see how much of it is investors copying each other and how much of it is investors acting independently.

I think if someone has that info, they are probably ahead of the game.

[ASH]

Re: Copycat trading creates boom/bust

http://www.newscientist.com/data/ima...5/26651701.jpg



This makes me think of the run on gold eagles. Lots of investors copying each other?

Look out below..

Would one get the same effect if everybody's "proprietary" computerized trading models were based upon similar assumptions and fed the same data... especially "technical" trading models based upon curve shapes rather than economic fundamentals?