...there is an inside market, including broker/dealers, corporate cheiftains, money center banks, investment bankers and hedge funds with access to privileged information. That inside market exists for one purpose. To make money. Not to make the customers of the afformentioned institions money. Which gets us back to Schabacker's key premise. I would submit to you that the "group (that) must provide the profit) would be folks like the typical denizen of SI, who is getting his/her information second hand, late, and incomplete. This information assymetry between the "houses" and the individual punter is a hurdle that has completely frustrated me for the past 18 months. Knowing and accepting that Wall Street is lying whenever it provides "information" leaves little wiggle room for the individual speculator to participate, except to fulfill his role as victim of the chicanery.
One of the key principles in the Mark Douglas-type paradigm discussed on this board is that traders who embark on the search for better and better information as the answer to their trading problems misunderstand their situation. The stronger the desire for the best information correlates with a stronger desire to avoid risk. To me this would call for a trader to either work in the shortest time frames, or to diversify to the point of buying Index funds, or simply not participating in the stock market and putting one's money to work elsewhere.
But why would a belief in inside information as a majority phenomena have any effect on what you do as a trader? The market, even if it is horribly manipulated, doesn't know what direction YOU are going to go, does it? I am continually baffled at how people (some of whom are otherwise very smart) who believe in manipulation and inside information automatically also believe that this will cost them money, rather than provide them with a windfall, if they take a position. It always comes back to what YOU do. You choose to get in, you choose to get out. Nobody can manipulate that unless YOU let them. |
