Does Fair Play Exist? --Stock Invest (1)
There is fair play here and there in this world, but definitely not the stock market. If you are a player, you have to know where the unfairness lies in order to come out unscathed. This is the first of a series of discussions about protecting your portfolio and making profits in the stock market.
Let me begin by asking what would you do, supposing you have $50 millions or more to play. If you're not sure, I'll tell you what I would like to do. With this power at my disposal, I'd want to be treated differently, better than the rest of the public, or the herd if you will. I'd want special access to more information about the companies I'm interested in. I'd want to trade in after-hours where the public is forbidden. I'd want to seduce the herd to buy when I sell, and sell when I buy. The ultimate thing I'd want is to influence herd behavior and share prices, make a kill as often as possible, and get away with it. Can this be done? You bet! I'll tell you how they do it in later series.
The next question is how far I can push the envelope. Well, the more money I have, the farther of course. If I can find some rich friends and collude in a joint venture, I can push even further. There's an old Chinese saying, "You can get the ghosts to push your carriage if you have enough money."
You'd cry foul and say this is against the law. Well, the law only punishes if you get caught and convicted. You know some rich guys get caught. Do you know how many more get away? Rich people tend to get richer because of the predatory advantages they possess. That's why you want to be rich, too. That's why you have to be vigilant before you become rich.
What about government regulations? Government is never efficient enough, and is often corrupt. When they catch somebody, it's always too late, e.g. Enron, WorldCom, Bear Sterns, etc. They won't help you recover your losses anyway. If you still assume that the stock market is fair play and is well regulated by government, you should stop reading now. This whole series is not for you, because it's about survival in the jungle of the stock market.
The stock market is a classical predatory game where the rich and powerful eat the ignorant weak. If you belong to the weak, the middle class, or the herd, you must refuse to be ignorant, get smart, and remain on vigilance. In other words, you should learn how to buy and play. Don't just buy and pray!
For further information, please email to stockfessor@comcast.net.
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