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EWI Article: Blaming Market Manipulation is an Obstacle to Success

  
Analysis, Education
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The folks at EWI (Elliott Wave International) released a provoking new article today entitled:

“Blaming Market Manipulation for Losses is a Huge Obstacle to Success.”

The article encourages traders to take responsibility for losses instead of finding scape-goats to blame.

Losses may have just been the result of a bad outcome from a high-probability trade… or might have been the result of a bad trading habit like doubling down on losers or chasing a fast price move.

Mr. Prechter makes the point that “Losses are part of the game” and should be used as learning experiences.

You won’t learn if your loss was a result of random probability or a bad trading behavior if you do not analyze the loss, and instead sweep it under the rug as a painful memory.

I particularly liked the quote:

“You don’t have to be perfect to win in the markets, either; you “merely” have to be better than almost everybody else, and that’s hard enough.”

The article is actually the 4th Point in an article published years ago (not during the current market melt-up!) by Robert Prechter on what it takes to be a successful trader.

It’s brief, but thought-provoking!

Top 10 Lessons from the Lehman Collapse

  
  Education
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Sunday is the five year anniversary of the bankruptcy of Lehman.  So what have we learnt?

1 – Bank executives lie…

…they also got paid huge amounts, weren’t as smart as they thought they were and those that ended up at the top tended to be deeply flawed individuals…

On Sept 10 in a conference call with investors, days before Lehman collapsed, Dick Fuld clearly stated to his shareholders that “no new capital was needed” and that “real estate and investments were properly valued”. Yet only five days later, Lehman filed for bankruptcy.

 

At a congressional Committee just a few weeks later, Dick Fuld was defiant. He stood by his “no new capital was needed” statement: “no sir, we did not mislead investors”. And he added that “we (made) disclosures that we believed were accurate”. If no new capital was needed why did Lehman go bust five days later? And if he didn’t know the financial position of Lehman what was he doing as CEO?

As part of the Congressional Committee hearings, Dick Fuld was allowed to make a presentation before he was questioned. These are his exact words as to the cause of Lehman’s demise:

“Naked short sellers targeted financial institutions and spread rumours and false information. The impact of this market manipulation became self-fulfilling as short sellers drove down the stock prices of financial firms. The ratings agencies lowered their ratings because lower stock prices made it harder to raise capital and (it) reduced financial flexibility. The downgrades in turn caused lenders and counter parties to reduce credit lines and then demand more collateral which increased liquidity pressures. At Lehman Bros the crisis in confidence that permeated the markets lead to an extraordinary run on the bank. In the end despite all of our efforts we were overwhelmed.” (more…)

Quotes on Manipulation

  
  Education
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“Observation # 1: The greatest number of losing traders is found in the short-term and intraday ranks.  This has less to do with the time frame and more to do with the fact that many of these traders lack proper preparation and a well thought-out game plan.  By trading in the time frame most unforgiving of even minute error and most vulnerable to floor manipulation and general costs of trading, losses due to lack of knowledge and lack of preparedness are exponential.  These traders are often undercapitalized as well.  Winning traders often trade in mid-term to long-term time frames.  Often they carry greater initial levels of equity as well.” Walter Downs

“The ability of banks to issue claims far in excess of their reserve position is essentially regulated counterfeiting when those claims have little or no chance of being satisfied, and it is an inherently cyclical and destabilizing process. The Fed, as US banks’ chief regulator, has not only condoned this imprudent, unsustainable (and Constitutionally-dubious) activity, it has encouraged and abetted it.”  Paul Brodsky and Lee Quaintance

“He did not publish or spread any information that was false.  Instead he praised the companies he had invested in to the skies, including the spreading of rumors.  Does his action fall into information-based manipulation because of this?  The answer is: partly.  From the total gain of USD 800,000 he had to repay USD 285,000, so just over a third of the total gain.”  Mark Schindler   

“Runs occur when a group of traders create activity or rumors in order to drive the price of a security up.”  Unknown (more…)

Market Manipulation

  
  Education
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Jesse Livermore learned the art of stock market manipulation, manipulating the prices of thinly traded stocks, in bucket shops.

On March 13, 1925, Arthur Cutten – one of his biggest rivals – accused Livermore of continuing his shady dealings – not in bucket shops – but, very seriously, on the Chicago Futures Exchange.

At the beginning of his career, Jesse Livermore had traded exclusively in bucket shops. He had prospered and built up his funds. Bucket shops weren’t set up to lose money, however, and soon they were refusing to deal with Livermore or worse, were cheating him. (more…)

The Official Bankster Dictionary

  
Analysis, Education
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In the underground world of banking, doing wrong means doing right, up is down, and left is right. I happened to stumble upon a secret version of the Bankster’s Dictionary the other day when I was visiting a bank. I’ve posted some of the terms below that were contained in the Bankster’s Dictionary to help you understand bankster language.

US Federal Reserve = European controlled private bank.
Central Bank = Counterfeiting Ring Leader
Criminal Underworld Currency Counterfeiters = Competitors that must be arrested and jailed.
Savings Account = Devaluation Account, Cash Advance for Gambling Division
Gambling = Banking Primary Business Line
Fraud = Banking Secondary Business Line
Las Vegas, Macau, Atlantic City = Model for running business operations.
Inflation = Currency Devaluation through anti-free market manipulation of interest rates.
Fractional Reserve System = Fractional Expansion Citizen Bankruptcy System, BSE (Biggest Scam Ever)
Futures Markets = Manipulation Casino, SkyNet Three-Card Monte Scam
Pablo Escobar, Joaquín ‘El Chapo’ Guzmán, The Ochoa Hermanos, Yakuza = Cash Cows
El Subcomandante Marcos aka Delegado Zero = Anti-poverty activist that must be wacked and shut up
Independent Media = Terrorist
Mass Media = Allies
Allen Stanford, Bernie Madoff = Occasional Patsies and Necessary Fall Guys to appease the public’s ire at us.
Stock Markets = Manipulation Casino, SkyNet Three-Card Monte Scam
Commercial Investment Firm Rating of “Buy” and Hold” = Contrarian Indicator to SELL!
Commercial Investment Firm Rating of “Sell” = Contrarian Indicator to “BUY!”
Barbarous Relic = USD, Euro, Yen
Beta = Empty Statistic meant to impress naïve investors
Loan = Usury
USD, Euro, Yen, etc. = Fantasy Digital Idea made real by banksters to control humanity
Women’s Liberation Movement = Expansion of Tax Base from only men to men AND women
Income Taxes = Wealth Transfer from citizens to owners of central banks.
Gold = Bankster Kryptonite
Silver = Bankster Kryptonite
Truth = Banker Kyrptonite
Lies & Deception = Bankster Standard M.O.
Free Markets = Fairytale story like Santa Claus, Easter Bunny and Tooth Fairy to be taught in business schools worldwide.
Drug Lords and Underground Crime Syndicates = Provider of global banking liquidity and huge year-end bonuses
Parasite = Favorite insect
Capitalism = Dead system that was killed by Central Banking but false scapegoat we can blame when we cause economic crashes and despair
Miscellaneous Charges = Small Monthly Charges to siphon off money from bank accounts that customers will never notice or complain about
Computer = Vehicle to rig all stock markets and commodity markets with HFT programs that execute trades not possible if executed by humans and if executed in a clear and transparent market.
Boom = Unsustainable price distortions caused by interest-rate manipulation and market rigging.
Bust = Opportunity to make money twice as quickly as in a boom!
Market Crash = Engineered event to ensure the peasants will never accumulate enough wealth to rebel against us.
Rising Markets on Mondays or Tuesdays into OpEx Fridays: Ruse to sucker more people to go long in order to fleece them by the time Friday arrives.
Declining Markets on Mondays or Tuesdays into OpEx Fridays: Ruse to sucker more people to go short in order to fleece them by the time Friday arrives.
Presidents and PMs = Best puppet and marionette allies to be rewarded handsomely after they leave office (see Tony Blair and the current POTUS)
Superior Judges, SCOTUS = Made Men
War = Double Bonus! Opportunity to devalue money at faster rate than during peace time and opportunity to accumulate more wealth from interest charged on war appropriations.
Universities, Colleges and MBA programs = Re-education camps to indoctrinate students into fairytales of non-existent free markets, non-existent capitalism, and lies about how stock markets, real estate markets and economic cycles really work.
Economic Journals and University Tenure = Carrot dangled in front of economic professors to ensure that they repeat to the world the “official” party line.
Key Economic Indicators = False manipulated statistics designed to dumb down citizens into believing economy is recovering even as we increase their economic suffering
Ben Bernarnke = Shakespearean clown.
Conspiracy = Best Word to Discredit Truth about the global monetary system when the truth somehow escapes our censorship algorithms and makes it to the mainstream media we control.
Machiavelli = Role Model
Ivy League Schools = Indoctrination Camps for media representatives and professors we will send to brainwash other global regions into believing our propaganda
CNBC = The Cartoon Network.
Goldman Sachs = Rookie Farm Camp for global criminal banking syndicate.
World Bank & IMF = Banks used by Western countries to impose crushing debt on developing nations to stunt their growth.
Bailout = Transfer of Wealth from citizens to us.
TBTF = Lie used to ensure we can perpetuate fraud.
Quantitative Easing = Currency Devaluation.
Fiat Currency = Worst Possible Idea
Propaganda = Daily Financial News Feed
Compartamentalization = Process to keep good people working as cogs in the machine within the banking industry ignorant of the fact that they are inflicting massive harm upon society.

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