What you need to know

Change Happens on the Margins….on the Periphery…

then it goes mainstream…

It works this way in markets, there is the bid & the ask, and there may be many bidders willing with orders placed to buy Gold at for $1160 a share but only the bidder who is willing to pay the highest price at any given time will always get a buy order filled. Same for a seller, the seller who is willing to sell for the lowest price is the one who will get his order fulfilled.

My 10 minute video below explains the bid & ask in the market, which demonstrates the principle.

Trade unionist Nicholas Klein gave in 1918 a address to the Amalgamated Clothing Workers of America in Baltimore:

“First they ignore you. Then they ridicule you. And then they attack you and want to burn you. And then they build monuments to you. And that, is what is going to happen to the Amalgamated Clothing Workers of America.”

Think about this; if you are in a theater and all of a sudden, people in the back start quickly rushing to leave the theater you can be sure that you will leave as well. You’ll act first and question later.

There may have been people moving out of theater for many minutes already, but at some point the whole theater is aware, and someone yells FIRE!

Same thing applies to financial markets, here a PDF report about this very issue from Lasse Heje Pedersen, a finance professor at Copenhagen Business School.