Just to give an idea of what has happened, here are the falls over the past 15 days.

The DOW is down 25% in 15 days

The SP500 is down 28% in 16 days

The NASDAQ is down 29.5% in 15 days

In Australian, The XJO (ASX200) is down 20.6% in 15 days

“The world is at severe risk of a global systemic financial meltdown and a severe global depression,” warned Nouriel Roubini, a New York University economist known as “Dr Doom” for his foresight in predicting the crisis.

“The US and advanced economies’ financial systems are now headed towards a near-term systemic financial meltdown as day after day stock markets are in free fall, money markets have shut down while their spreads are skyrocketing, and credit spreads are surging through the roof,” he wrote in his newsletter.
Not the sort of stuff which instills confidence is it?

Thought this is rather interesting … and ring so true – at least for me personally.

Hmmm …. what step am I at right now? Anyhow see below!

They are as follows:

1. We accumulate information – buying books, going to seminars and researching.
2. We begin to trade with our ‘new’ knowledge.
3. We consistently ‘donate’ and then realise we may need more knowledge or information.
4. We accumulate more information.
5. We switch the commodities we are currently following.
6. We go back into the market and trade with our ‘updated’ knowledge.
7. We get ‘beat up’ again and begin to lose some of our confidence. Fear starts setting in.
8. We start to listen to ‘outside news’ and to other traders.
9. We go back into the market and continue to ‘donate’.
10. We switch commodities again.
11. We search for more information.
12. We go back into the market and start to see a little progress.
13. We get ‘over-confident’ and the market humbles us.

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