Svenwulf
02-14-2007, 12:33 AM
its always important to understand the other side of any trade you enter, imo. despite the feeble attempts of the recent hacks, it is important that we discuss the things that are weak about this market. we have to know their game better than they know it themselves. only then do we have the confidence to resist panic and stay with our positions. or understand when we have misjudged a situation and cut our losses.
so, what worries folks?
manipulated markets for one. borrowed from bill cara:
Another term for "shake-out" is "sweep the street" in which a group of conspiring market makers call around to their desks and simultaneously pull their bids, which causes prices to fall, which in turn triggers some near stops. Then after another group phone call (many are on the same squawk box), the bids are re-entered, and the trap closed. Then they take the market up. This practice has been going on for oh maybe 80 years, and I'd guess that many of the leading lights on Wall Street know the game, and may even be experts at it. What is wrong with this, of course, is those market makers hold your orders and they use this knowledge to trade against you. They conspire to rip you off. Wall Steet and Govt facilitates it because of something called a broker-dealer, which is the most conflicted entity the world has ever seen. When brokers are separated from dealers, which are separated from commercial lending banks, then, and only then, will there be a remote chance to have a "fair" market. I have been writing about this problem for almost three years in this blog. I hope the message is sinking in. BTW, I have made these same statements, formally and informally, to securities regulators. They don't and won't take action because regulators first serve vested interests. The public is an after-thought. It's up to all of you to speak up if you have any hope of trading on a level playing field.
so, what worries folks?
manipulated markets for one. borrowed from bill cara:
Another term for "shake-out" is "sweep the street" in which a group of conspiring market makers call around to their desks and simultaneously pull their bids, which causes prices to fall, which in turn triggers some near stops. Then after another group phone call (many are on the same squawk box), the bids are re-entered, and the trap closed. Then they take the market up. This practice has been going on for oh maybe 80 years, and I'd guess that many of the leading lights on Wall Street know the game, and may even be experts at it. What is wrong with this, of course, is those market makers hold your orders and they use this knowledge to trade against you. They conspire to rip you off. Wall Steet and Govt facilitates it because of something called a broker-dealer, which is the most conflicted entity the world has ever seen. When brokers are separated from dealers, which are separated from commercial lending banks, then, and only then, will there be a remote chance to have a "fair" market. I have been writing about this problem for almost three years in this blog. I hope the message is sinking in. BTW, I have made these same statements, formally and informally, to securities regulators. They don't and won't take action because regulators first serve vested interests. The public is an after-thought. It's up to all of you to speak up if you have any hope of trading on a level playing field.