Position is everything. And there happened to be quite a few traders who think they have Position. There are about ten thousand of those. Then there are those who know that they have Position – round about fifty. The top fifty or so have very little to distinguish them from one another; the top seven knows the trading patterns of every one of the fifty. Then there is the reason the top seven is the top seven – they have bigger money behind them than anyone else. And who is the Winner? Well, let us leave that right there.
Japan trades in a certain way. Their traders are usually easy to spot, since they trade like a mountain. That is, their pattern induced in the market place looks like a mountain, and that is also their style. Even if they invert the mountain then one can still find the mountain – for a big up and down movement with some peaks and valleys in-between looks like a mountain, inverted or no. These mountains remind of the island Okinawa, and of Fuji mountain, an active volcano.
The first day, they hit me bloody. I lost money. Japan trades funny, in some ways. They do not always immediately trade for position, sometimes they wait days before they do something. Why? Their reasoning: make sure of profits. Remember, they do not only trade currencies and stocks, they also have physical goods that are shipped; cars, toasters, electronics, and so on. No-one knows exactly when the goods are moved – that depends on how somebody high up feels. This randomness ensures that Japan can move freely, and with (a) maximum utility. And so I lost some money. Gained position, though, for so one learns.
Luxembourg trades completely different from anyone else. They induce large movements that are as unpredictable as the ...
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...ody else does. That means, I made the right decision, because Eric was trying to – and succeeded – at crashing the market. The only choice open to Eric is to crash the market up or down, and I will know. I will make money, but not a great deal of it. Of interest is the direction. If the crash goes in the wrong direction, then everybody loses money and dies. If the crash goes in the right direction, then everybody end with money, and the crash can be handled. I will be watching.
Fifty traders are left. If I defeat, co-opt them, then maybe we can aim the crash. There will be money for everybody and me. How about it? I am sure at least one of you is reading this. And yes, I know, none of you have the intellect to prevent a catastrophic crash. Good job.
Day seven: I had to win. Lost money, but won the game. Now the market does what I tell it to do.
Day one:
...o rational decisions being made. Eventually, the team experience huge financial losses (Thaler & Sunstein, 2003).
Finally, investors went into “panic mode” on October 24th, 1929, and began trading and dumping their shares, totaling a record of 12.9 million. Of course, following “Black Thursday,” the more well-known “Black Tuesday” ensued as a result of this. Between Black Monday and Black Tuesday, the market lost 24% of its value, and investors bought and traded over 28.9 million stocks. These stocks, now worthless, were used as firewood for some investor’s homes. The Dow Jones Company is perhaps the greatest example for this crash. Dow Jones started at 191 points at the beginning of 1928, then more than doubling to 381 points by September 1929. The crash caused their record 381 points to plummet to less than 41 p...
Not only were millions of Americans been put out of work due to these manager’s actions, the American financial markets themselves were pushed to the brink of collapse. Despite the fact that the global financial markets, in reality, are not perfectly efficient, there is a corrective mechanism built into the day-to-day trading in the market. When prices are driven down by large sells, either by large investors or a movement in a stock, there are usually new buyers for these stocks at the cheaper price. Managers of...
It has been said that every good thing must arrive at an end. On account of the Roaring Twenties that end came suddenly and startlingly. It is simple for one to think back upon the monetary circumstance that prompt the accident and disparagement the specialists for not seeing the indications of a potential calamity. Be that as it may, it was not all that simple for them to see such an accident coming. The 1920 's were a blasting decade and stock costs appeared to be at an unfaltering move for an apparently interminable ascent. Numerous elements can be ascribed to the reason for the accident however nobody element can be singled out as the lone reason. The real reasons for the share trading system accident of 1929
During 1928, the stock market was common among any class of the roaring twenties. Ordinary people talked about, and many made millions off the stock market. People watched other people invest their money and gain more profit hence, increasing other’s trust in the stock market. Many people did not have money to pay the total prices of stocks; people bought stocks “on margin”, meaning that the buyer would put down some of his own money, but the rest the buyer would borrow from a broker. Thus, the buyer borrowed about 80-90 percent of the cost of the stock and only 10-20 percent of his money (“The Stock Market Crash of 1929”). This way of investing money was very risky. At times, brokers issued a “margin call.” In this case, the buyer had to pay back the money he borrowed earlier. Most ordinary people bought...
Upon seeing the news, some investors jumped out of windows because they had lost all hope of recovery. As for everyone else, they yelled, roared, fell to the floor; the police were called into the stock exchange to keep control.
Do to the great depression of 1930 the world was economically on its knees throughout most of the 30’s and early 40’s. This had great impacts on trades between many countries to include the US and Japan. Prior to this point, the US had been primarily importing silk from the Japanese and we had been exporting oil and coal commodities to them. The Japanese had felt it was a better option to seek elsewhere for the needed resources to increase their military footprint at the brink of World War II. Already at the verge of war with the Chinese, in 1937 the Japanese decided to force a war at Manchuria, China. In their minds this would be an outlet to seek those resources.
Wall Street in the 1980s had big competition among the brokers to make money in legal and illegal ways. Although, making money was easy and quick, but nothing can compare to Bud’s guilty feelings. Bud causes loss of
Morgenson, G. (2005, September 17). Clues to a Hedge Fund's Collapse. In The New York Times. Retrieved November 1, 2013
The banks wanted their money from the brokers. The brokers wanted their money from the customers. The only way most customers could get the money was to sell the stock, and selling the stock depressed the market even more, increasing pressure all along the line. (Judith S. Baughman, Victor Bondi, Richard Layman, Tandy McConnell, and Vincent Tompkins)
The stock market is an enigma to the average individual, as they cannot fathom or predict what the stock market will do. Due to this lack of knowledge, investors typically rely on a knowledgeable individual who inspires the confidence that they can turn their investments into a profit. This trust allowed Jordan Belfort to convince individuals to buy inferior stocks with the belief that they were going to make a fortune, all while he became wealthy instead. Jordan Belfort, the self-titled “Wolf of Wall Street”, at the helm of Stratton Oakmont was investigated and subsequently indicted with twenty-two counts of securities fraud, stock manipulation, money laundering and obstruction of justice. He went to prison at the age of 36 for defrauding an estimated 100 million dollars from investors through his company (Belfort, 2009). Analyzing his history of offences, how individual and environmental factors influenced his decision-making, and why he desisted from crime following his prison sentence can be explained through rational choice theory.
Japan has one the most advanced economies in the world, with an advanced economy comes an advanced equity market. As other advanced equity markets are, the Japanese market is similar to the U.S. in its essential functions and its operation by the exchanges that allow its existence. The Japanese stock market is third largest in the world by market capitalization, surpassed only by the United States and China. Market participants trade over the Tokyo Stock Exchange and the Osaka Securities Exchange which combined to form the Japan Exchange Group (JPX) in 2013 (JPX.com). As of November 2015 there were 3500 companies listed as part of the JPX and over $400 billion dollars of shares traded in 2014 (World Federation of Exchanges).
Japan’s rising yen and the decline of the US dollar, East Asia Forum, 2011. Available at:
Have you ever invested in the stock market? If so, do you know where your money is really going? The stock market is a risky business and it can make or break people’s lives. The stock market is used to daily to keep America on its trembling feet; it’s also being used at this very moment to cheat people out of money for personal gain. This happens every day in the stock market and its evolving rapidly, super computers that can trade faster than a blink of an eye, social media trends that can predict share values, and intricate stock market schemes that are getting harder and harder to find and take down. While the stock market keeps the world turning and the economy steady, the stock market is also being used in manipulative ways that are not always legal.
The biggest stock exchanges are the New York Stock Exchange and NASDAQ. The New York Stock Exchange is a large building in Lower Manhattan that does auction-style trading with a lot of face to face interaction through specialists, brokers, and buyers. There are upper floors in this exchange on which specialists determine the prices of all the stocks. This information then travels to the brokers who work auctions face to face with buyers in order to sell the stocks. America’s biggest companies, like Coca-Cola and McDonald’s, sell their stocks through this exchange. NASDAQ is a virtual stock exchange with no physical building. This exchange was created during the 1970s but began thriving during the tech boom of the 1990s. The tech boom helped this exchange become the home of more technological companies li...