Nothing Is Not Manipulated ?
“Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men.”
Lord Acton, 1887
What happens when you find you and your mates account for 40% of a $5.3 trillion a day fx market ?
I would say this is not the first time and 40% is a lot of position to get out when you are hit by say, a central bank or monster hedge fund ?
Unless you are trading to make that extra profit from your superior stand point in being able to see the stop loss levels of others, the direction of market flows and market positions ?
Where do we draw the line ?
“It has become much more a market trading for trading’s sake”, the top trader at Norway’s sovereign wealth fund says.
His disadvantage “comes when other traders spot a big investor coming and then push the price down or up, knowing the investor will have many more shares to buy or sell”.
Is it any wonder that financial literacy does not work ?
Because of you stick to the rules, they will read you like a book and they already know your positions and stop loss levels if you are important enough.
After all this stuff I have been reading on Singapore penny stocks, gold, interest rates, mortgages and all, I think the best strategy is to play the black swan events via options as the markets increasingly get concentrated in the hands of a few.