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To elevate the situation here into some grand battle of the wicked versus the innocent is to oversimplify. The market is so fascinating precisely because it is not simple. The stock action here discloses no elaborate fraud; only the usual interplay between investors who are sophisticated and naive, patient and frantic, daring and cautious. Yes, market makers take advantage of demand--that's what they do for a living. The buyers here knew, or should have known if they are indeed adults, that no particular price was guaranteed on Monday, and that panic buying is often later joined by its twin, panic selling. If you don't know that then, as Sojourner correctly suggested, invest first on paper. Do it a lot until you are sure you understand stock movements, and can recognize market hysteria. I know many have bought the line that every time the chips don't fall our way we are "victims" of some one or some thing, or some overarching conspiracy. While this is sometimes true, there is too great a tendency for some to use this as a crutch, rather than accepting mature responsibility. |
