The Fengshui of Stocks

Can you believe??    Using Fengshui for stocks?  Hmmmmmmm doesn’t sound like a good investing idea, but who knows it might work if you believe in it.  I wouldn’t suggest though.   Here is the article from one of the bloggers.

Chinese investors are finding a new application of the country’s ancient philosophies. I Ching, Ying Yang and the Eight Diagrams - classics and concepts from more than two thousand years ago - are now directing the buying and selling of stocks in the 21st century’s hottest stock market.

Zhao Zhe is one such investor. He said he could predict the trend of the Shanghai stock market by the Eight Diagrams of Chou Yi, Securities Daily reported. He explains how it works: Buyers are Yang and sellers are Ying. The interaction of the two opposing forces caused the ups and downs of the market. An extreme of Ying would unavoidably turn to Yang, and vise versa. To predict the details of the market, Zhao uses the Eight Diagrams and calculate future moves by the method of Xiang, Shu, Li and Yi.

It is difficult to find out how many Chinese investors are using such method, but beneath the surface is a language system that is indicative of Chinese investors’ mentality.

A stock is called a Pan, literally meaning a dish. A must-know word is Cao Pan Shou, or hands that manipulate the dish. Zhao is a successful “hand” and has made 18 million Yuan in trading stocks. These “hands” are usually institutional investors with large capital in a stock, and are thought to profit from manipulating stock price.

The strategy for individual investors, therefore, is to follow the moves of the “hands.” Naturally, guessing the manipulator’s next step becomes essential. The game has bred a new circle of bloggers and has drawn quiet a following. The blog posts call institutional investors “dealers” or “wolves.” Individual investors are encouraged to “dance with the wolves” or “lick blood on the blade.”

Trading stocks is called “frying” stocks or “operating” stocks. One can hold a stock in short, medium or long lines. A short line is to hold stocks for a few hours up to a couple of days. A medium line is up to several weeks, and a long line could mean months or years.

This is the popular language used by China’s investing communities – a world away from the intrinsic value model of Warren Buffett or Benjamin Graham. These words hopefully offer a glimpse of the way Chinese investor’s reason. So, don’t be surprised to hear Fengshui applied to stocks next time.

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