So if all of the above go about there business and ALL make money overall which they have to do to stay in business agreed? Where did that money come from? The tooth fairy or retail? They may not care about retail cause let's face it retail traders are generally stupid and will just throw money away 99% of the time. They just fight over what retail give away chasing there dreams. Basic logic, get some!
Mate, just look on the DOM on the ES or on the bond futures or on forex...do you really think all those thousands of contracts worth billions are from retail investors? Most retail 'players' barely have $10k in their trading accounts! And no, many institutions lose money. They don't all make money. Plenty of hedge funds go bust or close up shop due to losses every year. To put it simple, institutions make money from each other. If a hedge fund announces they made $2 billion this year, it obviously wasn't from screwing retail traders. Basic logic, my man!
That's the big players fighting over the scraps, trying to maximise there companys gains. There profits come from the 350mil based on 5% of worlds population, all on average losing the $100 per month. Money isn't created out of thin air, it is merely moved around, from retail to them. You have no logic or reason, you've been educated by the system and it is all lies.
Nobody cares about retail? Is that why every market maker is trying to purchase retail order flow? Is that why every brokerage is trying to sell order flow to the highest bidder? Do you check the 606 report from your broker? Is that why every HFT is trying to sniff out orders with high alpha (ie retail). Retail in the aggregate is a huge fucking chunk of the market. Retail is the prey that feeds the wolves. The whole goddamn ecosystem is dependent on retail.
Someone else gets it, finally IF Retail world wide where banned from trading, the big boys would just pass the money around between themselves, they'd all over all break ever trading wise, but lose huge as they have huge expenses, building, staff, some might make some $$'s, some might loss some ofcourse.
Exactly. Casinos can't function without customers. Big whales and small sardines all get eaten in the end.
Where do the hedge funds get the money? How many billions does CALPERS have under management? Who is easier to fleece? Some state retirement fund or some other cutthroat hedgefund predator. Retail pays the bills for everyone. Main Street and Wall Street. Fuckin A, look at the options market. Compare the public bid/offer to where trades actually take place. Retail pays retail prices and helps spread the money around. Retail is the plankton in the great polluted ocean that is the financial market.
But, but, but... Calpers is an institution!!! Calpers farms its money to different fund managers....it doesn't open a some retail Scottrade account up and deposit $100 billion and start buying stocks....you been drinking, Guile?
CALPERS gets its money from retail, invests in a retail fashion and is as unsophisticated as retail. Retail IN THE AGGREGATE is what feeds the market.