Window dressing: something to consider?

Discussion in 'Trading' started by andread, Jul 3, 2006.

  1. andread

    andread

    While looking around to find an explanation for some price movements, I found a new term: window dressing. It's always annoying to see that people managing your money are using these tricks. Very professional.

    Anyway, I know what it is, what I wonder is if it happens so often. Apparently it does, so I wanted to ask the more experienced people if it's something to consider at the end of a quarter.
     
  2. "The meaning of your communication is the response you get."
     
  3. I think its very prevalent. Look at SEC.GOV, type Renaissance Technologies, or SAC Capital and youll see these funds holding nothing volatile or likely to move... highly unlikely that they get their profits from these stocks. Most definitely window dressing
     
  4. Window dressing, bucketing, churning, all tools of the trade :)
     
  5. andread

    andread

    learned something new. Thanks :)
    But bucketing and churning don't influence the price as window dressing, do they? They are just unethical broker's practice
     
  6. what are "window dressing, churning, bucketing"?
     
  7. uh? why should it be unethical? and why blame the brokers...its funds that do that at the end of the qt, innit.
     
  8. ================
    Trendy SEC list, neat read ;
    SAC Capital

    Seasonal patterns arent predictions, nickname andread;
    and in the past , more dressing in thanksgiving quarter,
    less dressing July 4 quarter. Hope it helps.

    :cool:
     
  9. andread

    andread

    bucketing and churning? Do funds do that?
    Maybe I got the wrong definitions. I'm using the definitions from investopedia:

    bucketing:
    A situation where, in an attempt to make a short-term profit, a broker confirms an order to a client without actually executing it. A brokerage which engages in unscrupulous activities, such as bucketing, is often referred to as a bucket shop.

    churning:
    An unethical practice employed by some brokers to increase their commissions by excessively trading in a client's account. This practice violates the NASD Fair Practice Rules. It is also referred to as "churn and burn", "twisting" and "overtrading".
     
  10. andread

    andread

    I'm not sure I really can use it to predict. I guess not all bad stocks are subject to window dressing. My main intention was to understand why some stocks go down without a reason. I think the best way to use this is just to be careful at the end of each quarter.

    Hey, I'm trying to learn something here, no jokes allowed :)
     
    #10     Jul 5, 2006