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Strategies & Market Trends : DAYTRADING Fundamentals

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To: elepet who wrote (9013)6/18/2000 10:45:00 PM
From: Apakhabar  Read Replies (2) of 18137
 
Thoughts on "Manipulation"

1. It can be defined as an attempt to fool people into thinking they should take a position opposite of what the manipulator intends to take.

2. Unlike FA or TA it is not based on agreed-upon numbers, so it cannot be measured. Proof of manipulation is based on anecdotal evidence.

3. Manipulation is akin to "bluffing" in poker. It is a trading strategy that carries a high degree of risk. It is actually gambling.

4. Manipulation, for many people, is a psychological construct. It is an excuse for losses; it is a way of blaming "forces beyond our control."

5. Successful traders regard manipulation as something no more or less pernicious as rain at a football game. It affects everyone equally, and you are wise to watch your footing. (When is the last time you heard a pro football team blame their loss on rain?)

6. Perhaps the reason people on this board make fun of people who complain about manipulation is because the people on this board regard themselves as professional traders, not professional gamblers... taking manipulaton too seriously suggests (to me) a frame of mind that considers trading to be closely related to gambling: like the roll of the dice, the whims of the market makers can at any time "walk your stock down" or commit some other unnatural act.

7. One concession: possibly illegal manipulation does exist in the markets of some pink sheet stocks. But I don't think successful traders pay any attention to those stocks.
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