The Markets Favorite Trick

Discussion in 'Trading' started by flipflopper, May 13, 2009.

  1. How to Make Sick Free Money:

    1. Be a huge money player!!
    2. Get inside information about a fundamental change in the underlying product (Stock/Currency/Commodity).
    3. Know that this information will not become known to the public for quite some time.
    4. As more seemingly contrary information is released keep pushing prices in the direction of the inside information.
    5. When the inside information becomes public initially buy on the release causing a spike then immediately begin selling out the entire position.
    6. Rinse and Repeat.

    Example: Crude oil this month. Drops in demand showing up all month, inventory BUILDS in the millions every week.

    Today we see the unexpected draw of 4 million barrels. I've seen this happen time and time again. Oil down and will probably turn direction for the foreseeable future.
     
  2. maxpi

    maxpi

    and sell covered calls...
     
  3. 7. Go to jail
    8. Drop soap in shower
    9. Worst day of your life
     
  4. You think those oil funds don't have more info then your average participant? You don't think they have contacts at refineries and do "channel checks?"

    It is a gray area that is not illegal and some would call it due diligence.
     

  5. Sure it's business as usual but you make it sound risk free. Remember these sharks will eat anything, even each other. If another player with bigger pockets gets wind of your position, they are more than happy to rip the shirt off your back and then kick your ass because it didn't fit right.
     
  6. First smart answer I've heard on these boards in a long time. I fully agree.