Hbunton,I gave you 2 TU,s for the post,and took one off for not posting it sooner.:)
(Didnt know bashers get paid,thats put a new complexion on my answers from here on..so if we ignore them,they dont get paid..good one).
On a similar vain..let me share my knowledge of traders.
I have spent most of my life in the Funds Management area,and with a couple of years to retiring,I joined a small Stock broking firm..I already had made plans I would live off the market,so like a finishing school,I wanted to be as best prepared as i could.
There were about 10 brokers employed,and this was a typical morning.
An hour before Market opened,the bread and butter clients,the traders were on the phone ready for the days action.
The plum clients who would trade several stocks each day got the first phone call.
LT investors were lucky to get a phone call,except when business was slow,and brokerage had to be made.
The common term was..Burnt..and on bad days,the brokers would lament..today I burnt off 2,3,4 clients...not good as this meant getting more clients.
All the brokers were trading as well..the stocks that looked active per day were the ones researched and recommended to the clients..so both traders and brokers were getting burnt.
As a novice,Id have a good run for a few days,then get smashed somewhere else taking clients with me.
Of the 10..there was 1 broker..always is...that was minting money on trades.
He had the least amount of clients,and 80% of the brokerage made was from him.
Management were only interested in the bottom line..income..they were onto what he was doing,but turned a blind eye.
He had been broking longer then anyone else in the office,and during that time,had networked..mostly after hours at the local watering hole frquented by other brokers.
There were 4 in his group,all from large broking houses.
Each morning us mortals were busy talking to clients..while ..him,would be whispering into the phone.
A target stock would be picked...now one of the advantages of the Brokers screen is that as each trade goes through..the broking house would have a code,so you could track who was buying/selling.So he knew when his mates were getting in.
He only ever worked on a 2-5 cent move but seldom ordered less then 400-600,000 shares. The exact entry and exit prices were predetermined..the bigger houses were investing legitimately and the responsibility of this cartel to do the buying..on the side they were doing there own thing.
The sell price was usually a couple of cents below high for the day...most of these trades had a duration of an hour..in out..zip.
if ever we were able to glimpse at his screen and see what was trading,by the time that happened,we were already on the road to get burnt.
This was a period when trading warrants over Options was the flavour of the times..no CFD,s then.Warrants unlike Options had a set market buy/sell provided..Options were in the hands of market makers,and most times there was no liquidity in the Options.
The difference was that..our man only persued the upside..however his mates with huge portfolios,knew how high they would take the stock..then hit the Put warrants.
Nothing to do with fundamentals..well to a little degree..as more trading opportunities..nothing to do with TA..this was about making money in that guaranteed channel..above the low and below the high.
The outside world in the same stock would invariably be scratching their heads as to what the hell happened to their stock that day.
So you have the top tier..the Fund manager..they do their research,pick a stock.and set a time frame. Then it moves to the second tier..the brokers..to execute the deals..and its this tier that is (more) corrupt.
Networking by brokers,is phase 1..the more experienced and with a more influentual network will move their tenticles to Media Business reporters,and any avenue that can further their cause (Income).
In its own perverted world,the aspirations of these brokers is to become the George Soros,s of trading..or to keep their jobs...ie when you talk..people listen.
Then there are the Madoffs in this world,century,s greatest Ponzie rip off.
We had our own..R. Rivkin...buy up a stock..then put in a Buy recommendation,and sell into the buys.
So when I read or hear about traders,I see thousands of dead bodies. Being in the know rules,but thats in the hands of only a few..the rest is scraps..sure sometimes you might be in song,but 9 out of 10..its guess work.
Thats why the Fundamentals are King..its get in at A..sell at Z..in the meantime,you will get slaughtered sooner or later if you try and second guess the journey.
If ..the man ..was lining up with his mates to hit LYC tomorrow,it will have nothing to do with anything but making money..up or down. Throw your hunches and your charts in the bin,or hop in the crocodile pit..or pick up a few more at these prices..put in draw and wait,watch.Safer.especially this once in a lifetime..FIRST MOVER ADVANTAGE.
LYC Price at posting:
$1.75 Sentiment: LT Buy Disclosure: Held
(20min delay)