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Stock Market Operators: Do they exist? How do they manipulate?

5 posters

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sriranga

sriranga
Co-Admin

By Benjamin Lee

I believe that most of us have heard of stock market operators. They are known by many different names and they are constantly the blame for our financial losses. In some parts of the world, they are known as sharks, syndicates, big bosses, speculators, liars, cheaters or stock market manipulators. Some of us cheer their existence and their operations while some cursed them as if they are the culprits to our financial ruins. Are they our friends or foes? As the famous saying goes, know thy foes and you will have the upper hand in battle. In this post, I will challenge and dare you to swim with the sharks and eat from the crumbs of their feeds and not to be their feed. Here I would like to bring out some of my personal thoughts on this question that most newbie has.

Ok, here is the short answer. Yes, you are right. They existed and their operations are hidden from most people especially the newbie in these financial markets. I believe if we know them and how they operate, we could actually move along with them. In fact, the whole purpose of technical analysis is to determine the balance of demand and supply and the stock market operators are some of the powerful and rich individuals or groups with much buying and selling power. If we are able to track their movement, we will be able to profit from their operations. However, if we are ignorant of their existence, we could be their next meal.

Basic facts of stock market operators are listed below for your reference.

* They work individually or in a group.

* They rely on the market trends to help them in their mission.

* The general publics are their big customers.

* They together work with the public listed company owners or insiders.

* They have a main mission objective to accomplish.

* The bulk of their operation revolved around the accumulation and the distribution of stocks from / to the general publics.

* They are rich and powerful figures but they are also humans that have emotions like all of us.

* They have extensive credit facilities and lower transaction costs than the retail investors.

* They do make mistakes like any one of us. Their mistake costs millions in dollars.

* Market news, stock market analyst, corporate announcements, word of mouth advertising, price bidding and order queues are some of their tricks and tools that they used to achieve their main objective.

* They don’t try to pick the bottom or the top like most retail investors do. Again, some of them try to do this and it costs them much sorrow and dismay.

* They do attempt to manipulate the chart to trick the chartist whether you like it or not.

*They are both the buyer and seller in the queue order at any given time.

*They are not doing charity work. They existed to make your money.

It is important to understand them well as they are big volume buyers and sellers. They can tilt the balance of demand and supply. Understanding the above traits of stock market operators will help to clear some of the myths that we have of them. Remember, they are humans like us. Some of the above points deserved to be elaborated further to bring out the secrets of trading methodologies that we will employ in our technical analysis.

Primary market trends are very important to their success and failures. If they judge wrongly on this, they could go bust easily as the power of leveraging will work against them. Remember this, they cannot fight against the trends and they don't have the strength to do so. Don't ever think that they can swim against the tides.

If their mission objective is to acquire stocks, they might push down the prices to cause temporary market panics to squeeze out the stocks out from the speculators and investors and this is especially true in certain countries where short-selling is not allowed. The success of this technique will depends on what sort of people that are holding the stocks. This will get rid of the intraday and short term traders. However, they will try to maintain the prices around a certain range as to keep the sellers motivated. Usually the public listed company owners and insider will work in tandem to collect the shares from the general public. After they exhausted the fearful speculators and investors, they will then turn their eyes to the stronger speculators and investors by pushing up the prices higher to catch their interests.

If their mission is to distribute stocks, they will push up the stock prices to catch the attention of speculators and investors. They will work with market analyst to create beautiful pictures of the company prospects. They will work with the public listed company owners and insiders to create scarcity of stocks. At this moment of time, they will also announce all the good news while pushing up the stock prices. They will queue up as buyers and sellers in the order queue. They will buy their own stocks to create volume to entice the crowd to follow. As they bid up and down the prices, stocks were distributed without the awareness of the general public.
Source:http://tradeorinvest.com/

http://sharemarket-srilanka.blogspot.co.uk/

wiki


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Thanks for sharing..

K.Haputantri

K.Haputantri
Co-Admin

Thanks Shri for sharing. I have made some reasonable profits from GREG, REEF, PAP, HVA & NESTL without any knowledge what the manipulators were actually doing. There are instances where I got stuck too.  Now only I understand how it worked.

Prince

Prince
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

http://forum.srilankaequity.com/t5589-the-deadly-art-of-stock-manipulation

D.G.Dayaratne


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

Private sector stock market operators not a problem at all It is apart of the system
Sri lanka problem is govt operators after 2009

As i said earlier When the CWE was main institution in the food commodity market no proper functioning of market forces.
The stock market also come to that level after 2009

Some say( According to a post in this forum) present downward trend also a manipulation to prevent foreign sales. Because govt can't afford that situation. Balance of payment problem

If that is true will foreigners come again?

If retailers have to suffer because of govt manipulation will they invest hard earn money in the stock market again ?

I say biggest problem in SL stock market is Govt manipulation



Last edited by D.G.Dayaratne on Mon Aug 26, 2013 5:03 pm; edited 1 time in total (Reason for editing : correction)

sriranga

sriranga
Co-Admin

Thanks for the feedbacks.
More reading
http://forum.srilankaequity.com/t14250-pump-and-dump-stock-fraud#92021

http://forum.srilankaequity.com/t14251-short-and-distort-naked-short?highlight=naked

http://sharemarket-srilanka.blogspot.co.uk/

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