TORT LAW - Promoter must be Underwriters for your losses ???

The whole foundation of stock market trends lay upon the Dow Theory. While I may not agree with EVERY of the principles since some maybe outdated with the NEW TECH compared to when the Dow Theory were conceptualized, some of the premise remain the same or shall I say the CORE of the Theory remain intact.

The next closes theory can evolve out of DOW THEORY is the ELLIOT WAVE THEORY. Again one need to look into the principle and concepts of both. Elliot Wave Believers and Practitioners focus on FORECASTING the market levels using Fibonacci Theory and the Wave Labels. The behavior of each waves.

What I observed and believed it is true with 30+ years of trading, analyzing and observations, THE MARKET HAS MAJOR INDICES with many faithful followers using them are barometer to gauge the market health. I am NOT going into details how the index are derived but I will briefly explained the stock market behavior in relation to the benchmark index.

When the big brother index falls or rises, it brings along the rest of the non-index linked stocks. We will have obscure and abnormal stocks that are detached from the index but we are not going to explain them as my focus is the overall and ignore the minority.

One do not need to be a genius to find winning stocks since 80% of the stocks DO FOLLOW THE INDEX. The difference is the volatility range. Some WILL gain more than others in a rising index and some will loose more in a falling index. It is best to identify a basket of stocks that you are comfortable and trade them properly.

Some will be laggards and come near market reversal or extreme especially in a rebound when the index stabilized after a prolong fall especially when the fearful panic  sentiment subside. When this dead dogs laggards come to live, it is the ripe time for the market to have another correction.

Old dog like me will have a basket of stocks across the different market segments to trade Do your homework and develop your own basket of stocks.

Remember you are responsible for your own bank accounts. Your losses are YOURS and not owned by 3rd party no matter what you hear or read. Unless your losses are water tight covered by promoters underwriter, you better off do your own homework. 

Ideally, proceed and claim for damages from the promoters.