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Pastimes : MANIPULATION IS RAMPANT --- Can We Stop It?

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To: Dave Gore who wrote (204)5/14/2002 1:32:08 AM
From: Mad2  Read Replies (1) of 589
 
One doesn't need to be a crook or even a tout.
Just recognize that it goes on and tune it out.
As long as humans are involved along with their emotions (greed included) there will be those who figure out how to bend or break the rules. Know that it happens.
Heck if it there wasn't some inefficiency to the whole process how would one have a chance to beat the market, it be socialism. We'd all turn our money over to the the 401k/pension board and accept whatever the rerturn was based on earnings etc....
Of course then the incentive for companies to excell would be gone and with it productivity growth etc.......
Just think of the all the BS nasdaq stocks in the 1999-2000 time frame.
Analysts promoting garbage (Blodgett and his group at ML refering to stocks they were "recomending" as POS and crap), yet at the same time ML was trying to gain favor.
Same thing, doesn't matter if its the slime bags or the starched shirts promoting their own self interest.
depite all that BS, you could have bought MO for 18 and change paying >9% dividend when NASDAQ hit 5,000, you could have bought JILL a solid retailer for 4 that now over 20, QFAB for 3-6 that's now at 14, ELBO another solid retailer for 12-15 that went over 40 and of course the beloved yellow metal.
TO WIN OR BEAT THE ODDS
1) Understand investor psychology, money flow and technical analysis......which is the market (be it individual issue, index or sector) telling you about buyer/seller behavior in real time.
2) Watch sectors from a technical standpoint (charts etc....is money flowing in or out).
3) Buy on fundamental (or sell short) when technicals support the decision.
It still comes down to using grey matter and pitting oneself up against everyone else, looking for the best upside potential with minimal downside. Frankly small investors/traders have a big advantage, compared to large funds who can't move in and out of illiquid or thinly traded issues.
br,
mad2
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