kjent, lol. I like you and always have my friend. It is good to discuss things on a Sunday afternoon. I have not found the holy grail or answers to all the questions..I would never be so bold. I have found MY holy grail. This is not everybodies cup of tea....which is a good thing... all the best Michael B. P.S. Pick your road folks, what say you? you know the question...
Folks, Here's a contemplation.... Do you like slow steady growth vs.. Quick directional growth... Caveat....You get to the same place...
Electric, You are the most confusing communicator on this board... Not only do you talk in circles...you conceptualize too much. Get to the point... Is trading gambling? Many traders here have brought out valid points against it. The poll can change too... Wifey
The only person here that could explain this without the confusion is a previous fellow here, named Acrary... He is no longer here...He is a head trader in Conneticut the last I heard... Some Folks need to hear traders language, not "plain speak" lingo.... But I believe still, that trading is not gambling...I want to be persuaded, otherwise....Am I close minded? Persuade me... Michael B.
Of course the capital markets are rigged One element which is obvious is that information is imperfectly spread throughout the participants. Think of the basic purpose of an IPO: is it not an attempt by a (virtually) perfectly informed entity -- aka the CEO/founding partners -- to sell an interest or share in their corporation to the least informed entity -- that is, the general public? How else would a changing of hands be seen as "fair", if not for a bit of rigging? Intermediaries exist to smooth out the transfer -- brokerages, mutual/pension funds and their ilk -- but eventually shares get to the point where they become "fully" distributed. Off the top of my head, since I'm about to eat dinner, Krispy Kreme and Boston Chicken seem to be the perfect examples of how the capital markets operate -- rigging is an absolute necessity imo.
OK, well, assuming that you are on the money, and that this is one evidence of a rigged market, how does a trader take advantage of this inherent unfairness. Do we always short an IPO that is distributed by an intermediary/investment banker? Is the fact that Google was not distributed via an intermediary the reason why it is now double its IPO price?
Doesn't a company go public to get cash? and better bank loans and all that growth and presence stuff?.....
I don't understand your point. How does what you've just said enable a trader to make money from an inherently inefficient/rigged market?
absolutly nothing at all...but when I bought IPO's I had to agree to an open price.... Its all pump and dump to me...but we were not supposed to do that...
It was just an example in response to your post about randomness vs rigged -- for those on the outside, markets will appear random; for those on the inside -- aka, with priveleged information or comprehension, whether from position, experience or otherwise -- they may not be rigged per se, but are definitely far from random. Skewed in their favor, may be a good compromise. I guess my point is that a trader should do all that he can to obtain a perspective where market movement ceases to appear random, or to await opportunities where such a perspective is to reveal itself -- then act.