One Thing You Must Understand About The Securities Market
It’s all a Fugazi
The Stock Market is corrupted.
It’s absurd how financial gurus are able to drive the narrative of attaining “Financial Freedom” whilst keeping their audience in the dark about the twisted nature of the stock market.
If you have watched “The Wolf of Wall Street”, which I highly recommend you do, you will come to realize that the stock market is a collaborated marketplace of scammers, often disguised behind professional job titles like “Hedge Fund Managers”, “Investment Manager”, and etc.
These people only have one purpose and one purpose only: To attract you to buy their stocks and feed money into their wallets for the rest of their lives.
Spare some time to watch the video below.
It is an insightful narration and explanation of an old video of Jim Cramer, an American Ex-Hedge Fund Manager, leaking the wicked ways of how big players in the stock markets move the market. All for the purpose of keeping big, fat bills in their wallets.
You can watch the video for a more in-depth understanding of the minds of hedge fund managers. But I’ll summarise here first.
From the video above, I’ve gathered and summarised how Hedge Fund Managers manipulate the stock market.
Stock Market Manipulation 101:
- Upon knowledge of Quarterly Earnings of big technology institutions like Apple(AAPL), Research In-Motions(RIM), Hedge Fund managers can call upon their neighboring trading institutions to be involved in manipulating the stock in certain ways to push the prices down
- Due to their connections in the financial industry, they can easily perpetuate the narrative that they want for a certain business via news outlets like CNBC, etc.
- Once the desired message has been broadcasted to the public, they will create huge positions in a certain stock to drive the sentiment they want to the public. This way, they will be able to 1) get people involved in the direction they want, 2) wipe out short-term traders by hitting their stop losses, 3) make a profit from their earlier positions.
It’s absurd to think about how the US Securities and Exchange Commission has not been able to intervene in such blatantly illegal acts. As such, when the government is unable to tame the “whale’s” illegal practices, we can expect to see action from the retail investors.
An infamous incident will be the case with Gamestop(Ticker symbol: GME).
Do give the above article a read to understand the Gamestop phenomenon!
While I commend the effort by retail traders to go against the corrupt practices of the Hedge Fund managers, I think it isn’t inherently sustainable. Ultimately, stock market manipulation is not an issue we retail traders can control.
So do we simply not bat an eye about the unlawful practices in the stock markets?
No, we need to equip ourselves with greater knowledge and vigilance when investing. You do not want to be a victim of one of the hedge fund manager’s exploitations.
Therefore, it begs the question.
How Can We Safeguard Ourselves With Such Manipulation?
Well, the first step to safeguarding ourselves against anything is to be aware of it.
Glad that’s out of our way.
For practical measures to prevent oneself from falling into one of their schemes, I have a few suggestions:
- Do your own research on stocks
- Do not listen and pay too much attention to the news
- Trust your own research
- Dollar-cost average
If you want me to elaborate on the details, let me know via the comments! I’ll dedicate a separate article on how you can do so.
TLDR: Trust yourself the most in the stock market. Even if it does go wrong, you learn a lesson — rather than being misguided by the news and not knowing why you lost the money.
Hope you find this article insightful! Let me know how you think or feel about this article.
Hope I have provided you with value! Invest safely out there.
If you enjoy reading stories like these and want to support me as a writer, consider signing up to become a Medium member. It’s $5 a month, giving you unlimited access to stories on Medium. If you sign up using my link, I’ll earn a small commission.
