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4 total messages Started by MENTOR Tue, 22 Apr 2003 10:45
het spel van verlies
#317
Author: MENTOR
Date: Tue, 22 Apr 2003 10:45
575 lines
25779 bytes
Een spel van verlies


Commissionairs, beurzen en adviseurs voeren grote reclamecampagnes om
meer verliezers naar de markten te lokken.  Sommigen wijzen erop dat
de handel in termijn contracten een zogenaamd zero-sum game is.  Zij
rekenen erop dat de meeste mensen denken dat ze slimmer zijn dan de
rest en verwachten te winnen in eer zero-sumgame.  De winnaars in een
zero-sum game verdienen net zoveel als de verliezers verliezen.

Wanneer u en ik 10 dollar wedden op de richting van de volgende
beweging van 100 punten in de index dan zal een van ons 10 dollar
verdienen en de ander 10 dollar verliezen.  Degene die het slimste is
zal in de loop van de tijd dit spel winnen.

De mensen geloven in de propaganda van de industrie over de zero-sum
game en gaan aan de slag.  Zij realiseren zich niet dat zij bezig zijn
met een minus sum game.  De winnaars krijgen minder
dan wat de verliezers verliezen omdat de industrie ook geld uit de
markt haalt.
De roulette in het casino is een minus-sum game omdat het casino 3 to
6 procent van de inzet moet verdienen.  Daarom is roulette op de lange
duur niet te winnen.  U en ik kunnen in een minus-sum game
terechtkomen wanneer wij onze weddenschap niet rekenen met elkaar
afsluiten, maar door bemiddeling van een tussenpersoon.  Wanneer wij
afrekenen heeft de verliezer 13 dollar verloren en de winnaar 7 dollar
gewonnen en de twee tussenpersonen gaan lachend naar de bank.
Commissies en marges zijn voor de handelaren hetzelfde als de
belastingen voor een ieder van ons.  Een handelaar moet zijn
commissionair en de machinerie van de beurzen onderhouden voordat hij
iets kan verdienen.  Het beter doen dan het gemiddelde is eenvoudig
niet goed genoeg.  U moet met kop en schouders boven de massa
uitsteken om een minus-sum game te winnen.

Uit het boek van ALEX elder "Verdienen  Met Beleggen"


THE DEADLY ART OF STOCK MANIPULATION

In every profession, there are probably a dozen or two major rules. 
Knowing them cold is what separates the professional from the amateur.

Not knowing them at all? Well, let's put it this way: How safe would 
you feel if you suddenly found yourself piloting (solo) a Boeing 747
as 
it were landing on an airstrip? 

Unless you are a professional pilot, you would probably be frightened 
out of your wits and would soil your underwear. Hold that thought as 
you read this essay 

... because I will explain to you how market manipulation works. 

In order to successfully speculate, one should presume the following: 
THE SMALL CAP STOCK MARKETS PRIMARILY EXIST TO FLEECE YOU! 

I'm talking about Vancouver, Alberta, the Canadian Dealing Network and

the US Over-the Counter markets (Pink Sheets, Bulletin Board, etc.). 
One could also stretch this, with many stocks, to include the world's 
senior stock markets, including Toronto, New York, NASDAQ, London,
etc. 

The average investor or speculator is not very likely to have much 
success in the small cap crapshoots. 

I guess that is what attracted ME to these markets. I have been
trying, 
for quite some time, to answer this question, "How come?" Now, I know.

And you should, too! 

"While these speculative companies do not actually make any money, one

can profit by speculating in these companies." 

That is the premise on how these markets are run, by both the stock 
promoters, insiders, brokers, analysts and others in this industry. 
That logic is flawed in that it presumes "someone else" is going to
end 
up holding the dirty bag. 

Follow this premise all the way through and you will realize the
insane 
conclusion: 

For these markets to continue along that route, new suckers have to 
continue coming into the marketplace. The conclusion is insane in that

such mad activity can only be short-lived. I disagree with this
premise 
and propose another solution 

What the professionals and the securities regulators know and 
understand, which the rest of us do not, is this. 


"RULE #1: 

ALL SHARP PRICE MOVEMENTS -- WHETHER UP OR DOWN -- ARE THE RESULT OF 
ONE OR MORE (USUALLY A GROUP OF) PROFESSIONALS MANIPULATING THE SHARE 
PRICE." 

This should explain why a mining company finds something good and 
"nothing happens" or the stock goes down. At the sametime, for NO 
apparent reason, a stock suddenly takes off for the sky! On little 
volume! Someone is manipulating that stock, often with an unfounded 
rumor. 

In order to make these market manipulations work, the professionals 
assume: (a) The Public is STUPID and (b) The Public will mainly buy at

the HIGH and (c) The Public will sell at the LOW. Therefore, as long
as 
the market manipulator can run crowd control, he can be successful. 

Let's face it: The reason you speculate in such markets is that you
are 
greedy AND optimistic. You believe in a better tomorrow and NEED to 
make money quickly. It is this sentiment which is exploited by the 
market manipulator. He controls YOUR greed and fear about a particular

stock. If he wants you to buy, the company's prospects look like the 
next Microsoft. If the manipulator wants you to desert the sinking 
ship, he suddenly becomes very guarded in his remarks about the 
company, isn't around to glowingly answer questions about the company 
and/or GETS issued very bad news about the company. Which brings us to

the next important rule. 

"RULE #2: 

IF THE MARKET MANIPULATOR WANTS TO DISTRIBUTE (DUMP) HIS SHARES, HE 
WILL START A GOOD NEWS PROMOTIONAL CAMPAIGN." 

Ever wonder why a particular company is made to look like the greatest

thing since sliced bread? That sentiment is manufactured. Newsletter 
writers are hired -- either secretly or not -- to cheerlead a stock.
PR 
firms are hired and let loose upon an unsuspecting public. Contracts
to 
appear on radio talk shows are signed and implemented. Stockbrokers
get 
"cheap" stock to recommend the company to their "book" (that means
YOU, 
the client in his book). An advertising campaign is rolled out 
(television ads, newspaper ads, card deck mailings). The company signs

up to exhibit at "investment conferences" and "gold shows" (mainly so 
they can get a little "podium time" to hype you on their stock and
tell 
you how "their company is really different" and "not a stock 
promotion.") Funny little "hype" messages are posted on Internet 
newsgroups by the same cast of usual suspects. The more, the merrier. 
And a little "juice" can go a long way toward running up the stock 
price. 

The HYPE is on. The more clever a stock promoter, the better his 
knowledge of the advertising business. Little gimmicks like 
"positioning" are used. Example: Make a completely unknown company
look 
warm and fuzzy and appealing to you by comparing it to a recent
success 
story, Diamond Fields or Bre-X Minerals. That is the POSITIONING 
gospel, authored by Ries and Trout (famous for "Avis: We Want To Be #
1" and "We Try Harder" and other such slogans). These advertising/PR 
executives must have stumbled onto this formula after losing their 
shirts speculating in a few Canadian stock promotions! The only reason

you have been invited to this seemingly incredible banquet is that YOU

are the main course. After the market manipulator has suckered you
into 
"his investment," exchanging HIS paper for YOUR cash, the walls begin 
to close in on you. Why is that? 

"RULE #3 

AS SOON AS THE MARKET MANIPULATOR HAS COMPLETED HIS DISTRIBUTION 
(DUMPING) OF SHARES, HE WILL START A BAD NEWS OR NO NEWS CAMPAIGN." 


Your favorite home-run stock has just stalled or retreated a bit from 
its high. Suddenly, there is a news VACUUM. Either NO news or BAD 
rumors. I discovered this with quite a few stocks. I would get LOADS
of 
information and "hot tips." All of a sudden, my pipeline was shut-off.

Some companies would even issue a news release CONDEMNING me ("We
don't 
need 'that kind of hype' referring to me!). Cute, huh? When the
company 
wanted fantastic hype circulated hither and yon, there would be
someone 
there to spoon-feed me. The second the distribution phase was 
DONE....ooops! Sorry, no more news. Or, "I'm sorry. He's not in the 
office." Or, "He won't be back until Monday." 

The really slick market manipulators would even seed the Internet news

groups or other journalists to plant negative stories about that 
company. Or start a propaganda campaign of negative rumors on all 
available communication vehicles. Even hiring a "contrarian" or 
"special PR firm" to drive down the price. Even hiring someone to 
attack the guy who had earlier written glowingly about the company. 
(This is not a game for the faint-hearted!) 

You'll also see the stock drifting endlessly. You may even experience
a 
helpless feeling, as if you were floating in outer space without a 
lifeline. That is exactly HOW the market manipulator wants you to
feel. 
See Rule Number Five below. He may also be doing this to avoid the 
severe disappointment of a "dry hole" or a "failed deal." You'll hear 
that oft-cried refrain, "Oh well, that's the junior minerals 
exploration business... very risky!" Or the oft-quoted statistic,
"Nine 
out of 10 businesses fail each year and this IS a Venture Capital 
Startup stock exchange." Don't think it wasn't contrived. If a 
geologist at a junior mining company wasn't optimistic and rosy in his

promise of exploration success, he would be replaced by someone who 
was! Ditto for the high-tech deal, in a world awash with PhD's. 

So, how do you know when you are being taken? Look again at Rule #1. 
Inside that rule, a few other rules unfold which explain how a stock 
price is manipulated. 


"RULE #4 

ANY STOCK THAT TRADES HUGE VOLUME AT HIGHER PRICES SIGNALS THE 
DISTRIBUTION PHASE." 

When there was less volume, the price was lower. Professionals were 
accumulating. After the price runs, the volume increases. The 
professionals bought low and sold high. The amateurs bought high (and 
will soon enough sell low). In older books about market manipulation 
and stock promotion, which I've recently studied, the markup price 
referred to THREE times higher than the floor. The floor is the launch

pad for the stock. For example, if one looks at the stock price and 
finds a steady flatline on the stock's chart of around 10 cents, then 
that range is the FLOOR. Basically, the markup phase can go as high as

the market manipulator is capable of taking it. From my observations,
a 
good markup should be able to run about five to ten times higher than 
the floor, with six to seven being common. The market manipulator will

do everything in his power to keep you OUT OF THE STOCK until the
share 
price has been marked up by at least two-three times, sometimes 
resorting to "shaking you out" until after he has accumulated enough 
shares. Once the markup has begun, the stock chart will show you one
or 
more spikes in the volume -- all at much higher prices (marked up by 
the manipulator, of course). That is DISTRIBUTION and nothing else. 

Example: Look at Software Control Systems (Alberta: XVN), in which I 
purchased shares after it had been marked up five times.There were 
eight days of 500,000 (plus) shares trading hands, with one day of 
750,000 shares trading hands. Market manipulator(s) dumping shares
into 
the volume at higher prices. WHENEVER you see HUGE volume after the 
stock has risen on a 75 degree angle, the distribution phase has 
started and you are likely to be buying in at or near the stock's peak

price. 

Example: Look at Diamond Fields (TSE: DFR), which never increased at a

75 degree angle and did not have abnormal volume spikes, yet in less 
than two years ran from C$4 to C$160/share. 

Example: Look at Bre-X Minerals (Alberta: BXM), which did not 
experience its first 75 degree angle, with huge volume until July
14th, 
1995. The next two trading days, BXM went down and stayed around C
$12/share for two weeks. The volume had been 60% higher nearly a month

earlier, with only a slight price increase. Each high volume and 
spectacular increase in BXM's share price was met with a price retreat

and leveling off. "Suddenly," BXM wasn't trading at C$2/share; it was 
at C$170/share.... up 8500% in less than a year! 

In both of the above cases, major Canadian newspapers ran extremely 
negative stories about both companies, at one time or another. In each

instance, just before another share price run up,retail investors fled

the stock! Just before both began yet another run up! Successful
short-
term speculators generally exit any stock run up when the volume
soars; 
amateurs get greedy and buy at those points. 

"RULE #5 

THE MARKET MANIPULATOR WILL ALWAYS TRY TO GET YOU TO BUY AT THE 
HIGHEST, AND SELL AT THE LOWEST PRICE POSSIBLE." 

Just as the manipulator will use every available means to invite you
to 
"the party," he will savagely and brutally drive you away from "his 
stock" when he has fleeced you. The first falsehood you assume is that

the stock promoter WANTS you to make a bundle by investing in his 
company. So begins a string of lies that run for as long as your 
stomach can take it. 

You will get the first clue that "you have been had" when the stock 
stalls at the higher level. Somehow, it ran out of steam and you are 
not sure why. Well, it ran out of steam because the market manipulator

stopped running it up. It's over inflated and he can't convince more 
people to buy. The volume dries up while the shareprice seems to
stall. 

LOOK AT THE TRADING VOLUME, NOT THE SHARE PRICE! 

When earlier, there may have been 500,000 shares trading each day for 
eight out of 12 trading days (as in the case of Software Control 
Systems), now the volume has slipped to 100,000 shares (or so) daily. 
There are some buyers there, enough for the manipulator to continue 
dumping his paper, but only so long as he can enlist one or more 
individuals/services to bang his drum. 

He may continue feeding the promo guys a string of "promises" and
"good 
news down the road." (Believe me, this HAS happened to me!) But, when 
the news finally arrives, the stock price goes THUD! This is entirely 
orchestrated by a market manipulator. You'll see it in the trading 
volume, most of which is CONTRIVED. A market manipulator will have 
various brokers buying and selling the stock to give the APPEARANCE of

increasing volume and price so that YOU do start chasing it higher. 

At some point during the stall stage, investors get fed up with the 
non-performance of the stock. It drifts for a while, in a steady 
retreat, with perhaps a short-lived spike in price and volume (the 
final signal that the manipulator has finally offloaded ALL of his 
paper). Then, the stock comes tumbling down -- having lost ALL of the 
earlier share appreciation. 


Sometimes, with the more cruel manipulators, they will throwin a
little 
false hope... giving you a little more rope so they can better hang 
you. Just after a severe drop, there will be a "bottom fishing" 
announcement which sends the share price up a bit on high volume,
rises 
a little more after that and then continues to drift. Meanwhile, you 
keep getting "shaken out" through a cruel drip-drip water torture of 
the share price's slow retreat. Again, virtually every movement is 
completely orchestrated. 


"RULE #6 

IF THIS IS A REAL DEAL, THEN YOU ARE LIKELY TO BE THE LAST PERSON TO
BE 
NOTIFIED OR WILL BE DRIVEN OUT AT THE LOWER PRICES." 

Like Jesse Livermore wrote, "If there's some easy money lying around, 
no one is going to force it into your pocket." The same concept can be

more clearly understood by watching the tape. When a market
manipulator 
wants you into his stock, you will hear LOUD noises of stock promotion

and hype. If you are "in the loop," you will be bombarded from many 
directions. Similarly, if he wants you out of the stock, then there 
will be orchestrated rumors being circulated, rapid-fired at you again

from many directions. Just as good news may come to you in waves, so 
will bad news. 

You will see evidence of a VERY sharp drop in the share price with
HUGE 
volume. That is you and your buddies running for the exits. If the
deal 
is really for real, the market manipulator wants to get ALL OF YOUR 
SHARES or as many as he can... and at the lowest price he can. Whereas

before, he wanted you IN his market, so he could dump his shares to
you 
at a higher price, NOW when he sees that this deal IS for real, he 
wants to pay as little as possible for those same shares... YOUR
shares 
which he wants to you part with, as quickly as possible. 

The market manipulator will shake you out by DRIVING the price as low 
as he can. 

Just as in the "accumulation" stage, he wants to keep everything as 
quiet as possible so he can snap up as many of the shares for himself,

he will NOW turn down, or even turn off, the volume so he can repeat 
the accumulation phase. 

In the mining business, there seems to always be another "areaplay" 
around the corner. Just as Voisey's Bay drifted into oblivion, during 
the fourth quarter of 1995 and early into 1996, the same Voisey Bay 
"wannabees" began striking deals in Indonesia. Some even used new 
corporate entities. Same crooks, different shingles. The accumulation 
phase was TOP SECRET. The noise level was deadly silent. As soon as
the 
insiders accumulated all their shares, they let YOU in on the secret. 

"RULE #7 

CONVERSELY, YOU WILL OFTEN BE THE LAST TO KNOW WHEN THIS DEAL SHOWS 
SIGNS OF FAILURE." 

Twenty-twenty hindsight will often show you that there was a "little 
stumble" in the share price, just as the "assays were delayed" or the 
"deal didn't go through." Manipulators were peeling off their paper to

START the downslide. And ACCELERATE it. The quick slide down makes it 
improbable for your getting out at more than what you originally paid 
for the stock... and gives you a better reason for holding onto it "a 
little longer" in case the price rebounds. Then, the drifting stage 
begins and fear takes over. And unless you have serves of steel and
can 
afford to wait out the manipulator, you will more than likely end up 
selling out at a cheap price. 

For the insider, market maker or underwriter is obliged to buy back
all 
of your paper in order to keep his company alive and maintain control 
of it. The less he has to pay for your paper, the lower his cost will 
be to commence his stock promotion again... at some future date. Even 
if his company has no prospects AT ALL, his "shell" of a company has 
some value (only in that others might want to use that structure so 
they can run their own stock promotion). So, the manipulator WILL buy 
back his paper. He just wants to make sure that he pays as little for 
those shares as possible. 

"RULE #8 

THE MARKET MANIPULATOR WILL COMPEL YOU INTO THE STOCK SO THAT YOU
DRIVE 
UP ITS PRICE SHARES." 

Placing a Market Order or Pre-Market Order is an amateur's mistake, 
typifying the US investor -- one who assumes that thinly traded issues

are the same as blue chip stocks, to which they are accustomed. 

A market manipulator (traders included here) can jack up the share 
price during your market order and bring you back a confirmation at 
some preposterous level. The Market Manipulator will use the "tape" 
against you. He will keep buying up his own paper to keep you reaching

for a higher price. He will get in line ahead of you to buy all the 
shares at the current price and force you to pay MORE for those
shares. 
He will tease you and MAKE you reach for the higher price so you
"won't 
miss out." Miss out on what? Getting your head chopped off, that's 
what! One can avoid market manipulation by not buying during the huge 
price spikes and abnormal trading volumes, also known as chasing the 
stock to a higher price. 

"RULE #9: 

THE MARKET MANIPULATOR IS WELL AWARE OF THE EMOTIONS YOU ARE 
EXPERIENCING DURING A RUN UP AND A COLLAPSE AND WILL PLAY YOUR
EMOTIONS 
LIKE A PIANO." 

During the run up, you WILL have a rush of greed which compels you to 
run into the stock. During the collapse, you WILL have a fear that you

will lose everything... so you will rush to exit. See how simple it is

and how clear a bell it strikes? Don't think this formula isn't 
tattooed inside the mind of every manipulator. The market manipulator 
will play you on the way up and play you on the way down. If he does
it 
very well, he will make it look like someone else's fault that you
lost 
money! Promise to fill up your wallet? You'll rush into the stock. 
Scare you into losing every penny you have in that stock? You'll run 
away screaming with horror! And vow to NEVER, ever speculate in such 
stocks again. But many of you still do.... The manipulator even knows 
how to bring you back for yet another play. 

What actors! No wonder Vancouver is sometimes called "Hollywood 
North." 



"FINAL RULE: A NEW BATCH OF SUCKERS ARE BORN WITH EVERY NEW PLAY." 

The Financial Markets are a Cruel, Unkind and Dangerous Playing Field,

one place where the newest amateurs are generally fleeced the most 
brutally.... usually by those who KNOW the above rules. 

Just as I have a duty to ensure that each of you understand how this 
game is played, YOU now have that same duty to guarantee that your 
fellow speculator understands these rules. Just as I would be a 
criminal for not making this data known to you, YOU would bejust as 
criminal to keep it a secret. There will always be an unsuspecting, 
trusting fool whom the rabid dogs will tear to shreds, but it does NOT

have to be this way. 

IF every subscriber made this essay broadly known to his friends, 
acquaintances and family, and they passed it on to their friends, word

of mouth could cause many of these market manipulators to pause. IF 
this effort were done strenuously by many, then perhaps the financial 
markets could weed out the crooked manipulators and the promoters
could 
bring us more legitimate plays. 

The stock markets are a financing tool. The companies BORROW money
from 
you, when you invest or speculate in their companies. They want their 
share price going higher so they can finance their deal with less 
dilution of their shares... if they are good guys. But, how would you 
feel about a friend or family member who kept borrowing money from you

and never repaid it? That would be theft, plain and simple. So, a 
market manipulator is STEALING your money. Don't let him do it
anymore. 
Insist that the company in which you invest be honest or straight...
or 
find another company in which to speculate. Your money talks in LOUDER

volumes than any stockpromotion scheme. ALWAYS refuse any deal which 
smells wrong. 

Refuse to tolerate the scams prevalent in the financial markets. This 
can ONLY be accomplished by KNOWING and USING the above rules. 
Thoroughly COMPLETE your due diligence on a company before risking a 
dime. Dig up the Insider Reports to find out who is blowing out their 
paper, how often they are blowing out their paper and whatever
happened 
to their "last play." 

Begin to use this as YOUR rule of thumb: If the insider's paper is 
really worthless, then avoid it. Find another's whose paper DOES hold 
promise and honest possibilities. In these small cap stockmarkets, you

are investing more in the INDIVIDUAL behind the play,than the 
"possibility" of the play itself. Ask yourself before speculating: 
Could I lend this person $5,000 for a year and hope to get it back? If

not, then don't! Do it for your own good and the good of everyone else

who is so foolish as to speculate in these financial markets! 

The truly sane and only somewhat safe solution to all of this: FIND 
GOOD COMPANIES IN WHICH TO SPECULATE AND GET INTO THEM AT THE GROUND 
FLOOR LEVEL. Anything else is criminal or stupid. This is a case where

there really isn't a gray area. It's either Black or it's White. The 
company and its management are scamsters or they really intend to
bring 
value to their shareholders. 

Author Unknown 
If you know the Author of this article please contact 
admin@netbored.com



Does this  article  comes from bloodinthestreet.com?
Re: het spel van verlies
#319
Author: HollidayTime
Date: Tue, 22 Apr 2003 13:46
581 lines
26638 bytes
Ik geef u heeft helemaal gelijk.
Iemand moet toch de rekening ( lees: gebouwen,winst,opties,goudenhanddruk )
betalen.

"MENTOR" <ten-for@freeler.nl> schreef in bericht
news:3ead1e78.8019811@textnews.casema.net...
>
> Een spel van verlies
>
>
> Commissionairs, beurzen en adviseurs voeren grote reclamecampagnes om
> meer verliezers naar de markten te lokken.  Sommigen wijzen erop dat
> de handel in termijn contracten een zogenaamd zero-sum game is.  Zij
> rekenen erop dat de meeste mensen denken dat ze slimmer zijn dan de
> rest en verwachten te winnen in eer zero-sumgame.  De winnaars in een
> zero-sum game verdienen net zoveel als de verliezers verliezen.
>
> Wanneer u en ik 10 dollar wedden op de richting van de volgende
> beweging van 100 punten in de index dan zal een van ons 10 dollar
> verdienen en de ander 10 dollar verliezen.  Degene die het slimste is
> zal in de loop van de tijd dit spel winnen.
>
> De mensen geloven in de propaganda van de industrie over de zero-sum
> game en gaan aan de slag.  Zij realiseren zich niet dat zij bezig zijn
> met een minus sum game.  De winnaars krijgen minder
> dan wat de verliezers verliezen omdat de industrie ook geld uit de
> markt haalt.
> De roulette in het casino is een minus-sum game omdat het casino 3 to
> 6 procent van de inzet moet verdienen.  Daarom is roulette op de lange
> duur niet te winnen.  U en ik kunnen in een minus-sum game
> terechtkomen wanneer wij onze weddenschap niet rekenen met elkaar
> afsluiten, maar door bemiddeling van een tussenpersoon.  Wanneer wij
> afrekenen heeft de verliezer 13 dollar verloren en de winnaar 7 dollar
> gewonnen en de twee tussenpersonen gaan lachend naar de bank.
> Commissies en marges zijn voor de handelaren hetzelfde als de
> belastingen voor een ieder van ons.  Een handelaar moet zijn
> commissionair en de machinerie van de beurzen onderhouden voordat hij
> iets kan verdienen.  Het beter doen dan het gemiddelde is eenvoudig
> niet goed genoeg.  U moet met kop en schouders boven de massa
> uitsteken om een minus-sum game te winnen.
>
> Uit het boek van ALEX elder "Verdienen  Met Beleggen"
>
>
> THE DEADLY ART OF STOCK MANIPULATION
>
> In every profession, there are probably a dozen or two major rules.
> Knowing them cold is what separates the professional from the amateur.
>
> Not knowing them at all? Well, let's put it this way: How safe would
> you feel if you suddenly found yourself piloting (solo) a Boeing 747
> as
> it were landing on an airstrip?
>
> Unless you are a professional pilot, you would probably be frightened
> out of your wits and would soil your underwear. Hold that thought as
> you read this essay
>
> ... because I will explain to you how market manipulation works.
>
> In order to successfully speculate, one should presume the following:
> THE SMALL CAP STOCK MARKETS PRIMARILY EXIST TO FLEECE YOU!
>
> I'm talking about Vancouver, Alberta, the Canadian Dealing Network and
>
> the US Over-the Counter markets (Pink Sheets, Bulletin Board, etc.).
> One could also stretch this, with many stocks, to include the world's
> senior stock markets, including Toronto, New York, NASDAQ, London,
> etc.
>
> The average investor or speculator is not very likely to have much
> success in the small cap crapshoots.
>
> I guess that is what attracted ME to these markets. I have been
> trying,
> for quite some time, to answer this question, "How come?" Now, I know.
>
> And you should, too!
>
> "While these speculative companies do not actually make any money, one
>
> can profit by speculating in these companies."
>
> That is the premise on how these markets are run, by both the stock
> promoters, insiders, brokers, analysts and others in this industry.
> That logic is flawed in that it presumes "someone else" is going to
> end
> up holding the dirty bag.
>
> Follow this premise all the way through and you will realize the
> insane
> conclusion:
>
> For these markets to continue along that route, new suckers have to
> continue coming into the marketplace. The conclusion is insane in that
>
> such mad activity can only be short-lived. I disagree with this
> premise
> and propose another solution
>
> What the professionals and the securities regulators know and
> understand, which the rest of us do not, is this.
>
>
> "RULE #1:
>
> ALL SHARP PRICE MOVEMENTS -- WHETHER UP OR DOWN -- ARE THE RESULT OF
> ONE OR MORE (USUALLY A GROUP OF) PROFESSIONALS MANIPULATING THE SHARE
> PRICE."
>
> This should explain why a mining company finds something good and
> "nothing happens" or the stock goes down. At the sametime, for NO
> apparent reason, a stock suddenly takes off for the sky! On little
> volume! Someone is manipulating that stock, often with an unfounded
> rumor.
>
> In order to make these market manipulations work, the professionals
> assume: (a) The Public is STUPID and (b) The Public will mainly buy at
>
> the HIGH and (c) The Public will sell at the LOW. Therefore, as long
> as
> the market manipulator can run crowd control, he can be successful.
>
> Let's face it: The reason you speculate in such markets is that you
> are
> greedy AND optimistic. You believe in a better tomorrow and NEED to
> make money quickly. It is this sentiment which is exploited by the
> market manipulator. He controls YOUR greed and fear about a particular
>
> stock. If he wants you to buy, the company's prospects look like the
> next Microsoft. If the manipulator wants you to desert the sinking
> ship, he suddenly becomes very guarded in his remarks about the
> company, isn't around to glowingly answer questions about the company
> and/or GETS issued very bad news about the company. Which brings us to
>
> the next important rule.
>
> "RULE #2:
>
> IF THE MARKET MANIPULATOR WANTS TO DISTRIBUTE (DUMP) HIS SHARES, HE
> WILL START A GOOD NEWS PROMOTIONAL CAMPAIGN."
>
> Ever wonder why a particular company is made to look like the greatest
>
> thing since sliced bread? That sentiment is manufactured. Newsletter
> writers are hired -- either secretly or not -- to cheerlead a stock.
> PR
> firms are hired and let loose upon an unsuspecting public. Contracts
> to
> appear on radio talk shows are signed and implemented. Stockbrokers
> get
> "cheap" stock to recommend the company to their "book" (that means
> YOU,
> the client in his book). An advertising campaign is rolled out
> (television ads, newspaper ads, card deck mailings). The company signs
>
> up to exhibit at "investment conferences" and "gold shows" (mainly so
> they can get a little "podium time" to hype you on their stock and
> tell
> you how "their company is really different" and "not a stock
> promotion.") Funny little "hype" messages are posted on Internet
> newsgroups by the same cast of usual suspects. The more, the merrier.
> And a little "juice" can go a long way toward running up the stock
> price.
>
> The HYPE is on. The more clever a stock promoter, the better his
> knowledge of the advertising business. Little gimmicks like
> "positioning" are used. Example: Make a completely unknown company
> look
> warm and fuzzy and appealing to you by comparing it to a recent
> success
> story, Diamond Fields or Bre-X Minerals. That is the POSITIONING
> gospel, authored by Ries and Trout (famous for "Avis: We Want To Be #
> 1" and "We Try Harder" and other such slogans). These advertising/PR
> executives must have stumbled onto this formula after losing their
> shirts speculating in a few Canadian stock promotions! The only reason
>
> you have been invited to this seemingly incredible banquet is that YOU
>
> are the main course. After the market manipulator has suckered you
> into
> "his investment," exchanging HIS paper for YOUR cash, the walls begin
> to close in on you. Why is that?
>
> "RULE #3
>
> AS SOON AS THE MARKET MANIPULATOR HAS COMPLETED HIS DISTRIBUTION
> (DUMPING) OF SHARES, HE WILL START A BAD NEWS OR NO NEWS CAMPAIGN."
>
>
> Your favorite home-run stock has just stalled or retreated a bit from
> its high. Suddenly, there is a news VACUUM. Either NO news or BAD
> rumors. I discovered this with quite a few stocks. I would get LOADS
> of
> information and "hot tips." All of a sudden, my pipeline was shut-off.
>
> Some companies would even issue a news release CONDEMNING me ("We
> don't
> need 'that kind of hype' referring to me!). Cute, huh? When the
> company
> wanted fantastic hype circulated hither and yon, there would be
> someone
> there to spoon-feed me. The second the distribution phase was
> DONE....ooops! Sorry, no more news. Or, "I'm sorry. He's not in the
> office." Or, "He won't be back until Monday."
>
> The really slick market manipulators would even seed the Internet news
>
> groups or other journalists to plant negative stories about that
> company. Or start a propaganda campaign of negative rumors on all
> available communication vehicles. Even hiring a "contrarian" or
> "special PR firm" to drive down the price. Even hiring someone to
> attack the guy who had earlier written glowingly about the company.
> (This is not a game for the faint-hearted!)
>
> You'll also see the stock drifting endlessly. You may even experience
> a
> helpless feeling, as if you were floating in outer space without a
> lifeline. That is exactly HOW the market manipulator wants you to
> feel.
> See Rule Number Five below. He may also be doing this to avoid the
> severe disappointment of a "dry hole" or a "failed deal." You'll hear
> that oft-cried refrain, "Oh well, that's the junior minerals
> exploration business... very risky!" Or the oft-quoted statistic,
> "Nine
> out of 10 businesses fail each year and this IS a Venture Capital
> Startup stock exchange." Don't think it wasn't contrived. If a
> geologist at a junior mining company wasn't optimistic and rosy in his
>
> promise of exploration success, he would be replaced by someone who
> was! Ditto for the high-tech deal, in a world awash with PhD's.
>
> So, how do you know when you are being taken? Look again at Rule #1.
> Inside that rule, a few other rules unfold which explain how a stock
> price is manipulated.
>
>
> "RULE #4
>
> ANY STOCK THAT TRADES HUGE VOLUME AT HIGHER PRICES SIGNALS THE
> DISTRIBUTION PHASE."
>
> When there was less volume, the price was lower. Professionals were
> accumulating. After the price runs, the volume increases. The
> professionals bought low and sold high. The amateurs bought high (and
> will soon enough sell low). In older books about market manipulation
> and stock promotion, which I've recently studied, the markup price
> referred to THREE times higher than the floor. The floor is the launch
>
> pad for the stock. For example, if one looks at the stock price and
> finds a steady flatline on the stock's chart of around 10 cents, then
> that range is the FLOOR. Basically, the markup phase can go as high as
>
> the market manipulator is capable of taking it. From my observations,
> a
> good markup should be able to run about five to ten times higher than
> the floor, with six to seven being common. The market manipulator will
>
> do everything in his power to keep you OUT OF THE STOCK until the
> share
> price has been marked up by at least two-three times, sometimes
> resorting to "shaking you out" until after he has accumulated enough
> shares. Once the markup has begun, the stock chart will show you one
> or
> more spikes in the volume -- all at much higher prices (marked up by
> the manipulator, of course). That is DISTRIBUTION and nothing else.
>
> Example: Look at Software Control Systems (Alberta: XVN), in which I
> purchased shares after it had been marked up five times.There were
> eight days of 500,000 (plus) shares trading hands, with one day of
> 750,000 shares trading hands. Market manipulator(s) dumping shares
> into
> the volume at higher prices. WHENEVER you see HUGE volume after the
> stock has risen on a 75 degree angle, the distribution phase has
> started and you are likely to be buying in at or near the stock's peak
>
> price.
>
> Example: Look at Diamond Fields (TSE: DFR), which never increased at a
>
> 75 degree angle and did not have abnormal volume spikes, yet in less
> than two years ran from C$4 to C$160/share.
>
> Example: Look at Bre-X Minerals (Alberta: BXM), which did not
> experience its first 75 degree angle, with huge volume until July
> 14th,
> 1995. The next two trading days, BXM went down and stayed around C
> $12/share for two weeks. The volume had been 60% higher nearly a month
>
> earlier, with only a slight price increase. Each high volume and
> spectacular increase in BXM's share price was met with a price retreat
>
> and leveling off. "Suddenly," BXM wasn't trading at C$2/share; it was
> at C$170/share.... up 8500% in less than a year!
>
> In both of the above cases, major Canadian newspapers ran extremely
> negative stories about both companies, at one time or another. In each
>
> instance, just before another share price run up,retail investors fled
>
> the stock! Just before both began yet another run up! Successful
> short-
> term speculators generally exit any stock run up when the volume
> soars;
> amateurs get greedy and buy at those points.
>
> "RULE #5
>
> THE MARKET MANIPULATOR WILL ALWAYS TRY TO GET YOU TO BUY AT THE
> HIGHEST, AND SELL AT THE LOWEST PRICE POSSIBLE."
>
> Just as the manipulator will use every available means to invite you
> to
> "the party," he will savagely and brutally drive you away from "his
> stock" when he has fleeced you. The first falsehood you assume is that
>
> the stock promoter WANTS you to make a bundle by investing in his
> company. So begins a string of lies that run for as long as your
> stomach can take it.
>
> You will get the first clue that "you have been had" when the stock
> stalls at the higher level. Somehow, it ran out of steam and you are
> not sure why. Well, it ran out of steam because the market manipulator
>
> stopped running it up. It's over inflated and he can't convince more
> people to buy. The volume dries up while the shareprice seems to
> stall.
>
> LOOK AT THE TRADING VOLUME, NOT THE SHARE PRICE!
>
> When earlier, there may have been 500,000 shares trading each day for
> eight out of 12 trading days (as in the case of Software Control
> Systems), now the volume has slipped to 100,000 shares (or so) daily.
> There are some buyers there, enough for the manipulator to continue
> dumping his paper, but only so long as he can enlist one or more
> individuals/services to bang his drum.
>
> He may continue feeding the promo guys a string of "promises" and
> "good
> news down the road." (Believe me, this HAS happened to me!) But, when
> the news finally arrives, the stock price goes THUD! This is entirely
> orchestrated by a market manipulator. You'll see it in the trading
> volume, most of which is CONTRIVED. A market manipulator will have
> various brokers buying and selling the stock to give the APPEARANCE of
>
> increasing volume and price so that YOU do start chasing it higher.
>
> At some point during the stall stage, investors get fed up with the
> non-performance of the stock. It drifts for a while, in a steady
> retreat, with perhaps a short-lived spike in price and volume (the
> final signal that the manipulator has finally offloaded ALL of his
> paper). Then, the stock comes tumbling down -- having lost ALL of the
> earlier share appreciation.
>
>
> Sometimes, with the more cruel manipulators, they will throwin a
> little
> false hope... giving you a little more rope so they can better hang
> you. Just after a severe drop, there will be a "bottom fishing"
> announcement which sends the share price up a bit on high volume,
> rises
> a little more after that and then continues to drift. Meanwhile, you
> keep getting "shaken out" through a cruel drip-drip water torture of
> the share price's slow retreat. Again, virtually every movement is
> completely orchestrated.
>
>
> "RULE #6
>
> IF THIS IS A REAL DEAL, THEN YOU ARE LIKELY TO BE THE LAST PERSON TO
> BE
> NOTIFIED OR WILL BE DRIVEN OUT AT THE LOWER PRICES."
>
> Like Jesse Livermore wrote, "If there's some easy money lying around,
> no one is going to force it into your pocket." The same concept can be
>
> more clearly understood by watching the tape. When a market
> manipulator
> wants you into his stock, you will hear LOUD noises of stock promotion
>
> and hype. If you are "in the loop," you will be bombarded from many
> directions. Similarly, if he wants you out of the stock, then there
> will be orchestrated rumors being circulated, rapid-fired at you again
>
> from many directions. Just as good news may come to you in waves, so
> will bad news.
>
> You will see evidence of a VERY sharp drop in the share price with
> HUGE
> volume. That is you and your buddies running for the exits. If the
> deal
> is really for real, the market manipulator wants to get ALL OF YOUR
> SHARES or as many as he can... and at the lowest price he can. Whereas
>
> before, he wanted you IN his market, so he could dump his shares to
> you
> at a higher price, NOW when he sees that this deal IS for real, he
> wants to pay as little as possible for those same shares... YOUR
> shares
> which he wants to you part with, as quickly as possible.
>
> The market manipulator will shake you out by DRIVING the price as low
> as he can.
>
> Just as in the "accumulation" stage, he wants to keep everything as
> quiet as possible so he can snap up as many of the shares for himself,
>
> he will NOW turn down, or even turn off, the volume so he can repeat
> the accumulation phase.
>
> In the mining business, there seems to always be another "areaplay"
> around the corner. Just as Voisey's Bay drifted into oblivion, during
> the fourth quarter of 1995 and early into 1996, the same Voisey Bay
> "wannabees" began striking deals in Indonesia. Some even used new
> corporate entities. Same crooks, different shingles. The accumulation
> phase was TOP SECRET. The noise level was deadly silent. As soon as
> the
> insiders accumulated all their shares, they let YOU in on the secret.
>
> "RULE #7
>
> CONVERSELY, YOU WILL OFTEN BE THE LAST TO KNOW WHEN THIS DEAL SHOWS
> SIGNS OF FAILURE."
>
> Twenty-twenty hindsight will often show you that there was a "little
> stumble" in the share price, just as the "assays were delayed" or the
> "deal didn't go through." Manipulators were peeling off their paper to
>
> START the downslide. And ACCELERATE it. The quick slide down makes it
> improbable for your getting out at more than what you originally paid
> for the stock... and gives you a better reason for holding onto it "a
> little longer" in case the price rebounds. Then, the drifting stage
> begins and fear takes over. And unless you have serves of steel and
> can
> afford to wait out the manipulator, you will more than likely end up
> selling out at a cheap price.
>
> For the insider, market maker or underwriter is obliged to buy back
> all
> of your paper in order to keep his company alive and maintain control
> of it. The less he has to pay for your paper, the lower his cost will
> be to commence his stock promotion again... at some future date. Even
> if his company has no prospects AT ALL, his "shell" of a company has
> some value (only in that others might want to use that structure so
> they can run their own stock promotion). So, the manipulator WILL buy
> back his paper. He just wants to make sure that he pays as little for
> those shares as possible.
>
> "RULE #8
>
> THE MARKET MANIPULATOR WILL COMPEL YOU INTO THE STOCK SO THAT YOU
> DRIVE
> UP ITS PRICE SHARES."
>
> Placing a Market Order or Pre-Market Order is an amateur's mistake,
> typifying the US investor -- one who assumes that thinly traded issues
>
> are the same as blue chip stocks, to which they are accustomed.
>
> A market manipulator (traders included here) can jack up the share
> price during your market order and bring you back a confirmation at
> some preposterous level. The Market Manipulator will use the "tape"
> against you. He will keep buying up his own paper to keep you reaching
>
> for a higher price. He will get in line ahead of you to buy all the
> shares at the current price and force you to pay MORE for those
> shares.
> He will tease you and MAKE you reach for the higher price so you
> "won't
> miss out." Miss out on what? Getting your head chopped off, that's
> what! One can avoid market manipulation by not buying during the huge
> price spikes and abnormal trading volumes, also known as chasing the
> stock to a higher price.
>
> "RULE #9:
>
> THE MARKET MANIPULATOR IS WELL AWARE OF THE EMOTIONS YOU ARE
> EXPERIENCING DURING A RUN UP AND A COLLAPSE AND WILL PLAY YOUR
> EMOTIONS
> LIKE A PIANO."
>
> During the run up, you WILL have a rush of greed which compels you to
> run into the stock. During the collapse, you WILL have a fear that you
>
> will lose everything... so you will rush to exit. See how simple it is
>
> and how clear a bell it strikes? Don't think this formula isn't
> tattooed inside the mind of every manipulator. The market manipulator
> will play you on the way up and play you on the way down. If he does
> it
> very well, he will make it look like someone else's fault that you
> lost
> money! Promise to fill up your wallet? You'll rush into the stock.
> Scare you into losing every penny you have in that stock? You'll run
> away screaming with horror! And vow to NEVER, ever speculate in such
> stocks again. But many of you still do.... The manipulator even knows
> how to bring you back for yet another play.
>
> What actors! No wonder Vancouver is sometimes called "Hollywood
> North."
>
>
>
> "FINAL RULE: A NEW BATCH OF SUCKERS ARE BORN WITH EVERY NEW PLAY."
>
> The Financial Markets are a Cruel, Unkind and Dangerous Playing Field,
>
> one place where the newest amateurs are generally fleeced the most
> brutally.... usually by those who KNOW the above rules.
>
> Just as I have a duty to ensure that each of you understand how this
> game is played, YOU now have that same duty to guarantee that your
> fellow speculator understands these rules. Just as I would be a
> criminal for not making this data known to you, YOU would bejust as
> criminal to keep it a secret. There will always be an unsuspecting,
> trusting fool whom the rabid dogs will tear to shreds, but it does NOT
>
> have to be this way.
>
> IF every subscriber made this essay broadly known to his friends,
> acquaintances and family, and they passed it on to their friends, word
>
> of mouth could cause many of these market manipulators to pause. IF
> this effort were done strenuously by many, then perhaps the financial
> markets could weed out the crooked manipulators and the promoters
> could
> bring us more legitimate plays.
>
> The stock markets are a financing tool. The companies BORROW money
> from
> you, when you invest or speculate in their companies. They want their
> share price going higher so they can finance their deal with less
> dilution of their shares... if they are good guys. But, how would you
> feel about a friend or family member who kept borrowing money from you
>
> and never repaid it? That would be theft, plain and simple. So, a
> market manipulator is STEALING your money. Don't let him do it
> anymore.
> Insist that the company in which you invest be honest or straight...
> or
> find another company in which to speculate. Your money talks in LOUDER
>
> volumes than any stockpromotion scheme. ALWAYS refuse any deal which
> smells wrong.
>
> Refuse to tolerate the scams prevalent in the financial markets. This
> can ONLY be accomplished by KNOWING and USING the above rules.
> Thoroughly COMPLETE your due diligence on a company before risking a
> dime. Dig up the Insider Reports to find out who is blowing out their
> paper, how often they are blowing out their paper and whatever
> happened
> to their "last play."
>
> Begin to use this as YOUR rule of thumb: If the insider's paper is
> really worthless, then avoid it. Find another's whose paper DOES hold
> promise and honest possibilities. In these small cap stockmarkets, you
>
> are investing more in the INDIVIDUAL behind the play,than the
> "possibility" of the play itself. Ask yourself before speculating:
> Could I lend this person $5,000 for a year and hope to get it back? If
>
> not, then don't! Do it for your own good and the good of everyone else
>
> who is so foolish as to speculate in these financial markets!
>
> The truly sane and only somewhat safe solution to all of this: FIND
> GOOD COMPANIES IN WHICH TO SPECULATE AND GET INTO THEM AT THE GROUND
> FLOOR LEVEL. Anything else is criminal or stupid. This is a case where
>
> there really isn't a gray area. It's either Black or it's White. The
> company and its management are scamsters or they really intend to
> bring
> value to their shareholders.
>
> Author Unknown
> If you know the Author of this article please contact
> admin@netbored.com
>
>
>
> Does this  article  comes from bloodinthestreet.com?
Re: het spel van verlies
#320
Author: ivo2
Date: Tue, 22 Apr 2003 18:51
581 lines
26757 bytes
Bedankt Straver, om dit aan onze Belgische beleggers uit te leggen.

ivo2

"MENTOR" <ten-for@freeler.nl> schreef in bericht
news:3ead1e78.8019811@textnews.casema.net...
>
> Een spel van verlies
>
>
> Commissionairs, beurzen en adviseurs voeren grote reclamecampagnes om
> meer verliezers naar de markten te lokken.  Sommigen wijzen erop dat
> de handel in termijn contracten een zogenaamd zero-sum game is.  Zij
> rekenen erop dat de meeste mensen denken dat ze slimmer zijn dan de
> rest en verwachten te winnen in eer zero-sumgame.  De winnaars in een
> zero-sum game verdienen net zoveel als de verliezers verliezen.
>
> Wanneer u en ik 10 dollar wedden op de richting van de volgende
> beweging van 100 punten in de index dan zal een van ons 10 dollar
> verdienen en de ander 10 dollar verliezen.  Degene die het slimste is
> zal in de loop van de tijd dit spel winnen.
>
> De mensen geloven in de propaganda van de industrie over de zero-sum
> game en gaan aan de slag.  Zij realiseren zich niet dat zij bezig zijn
> met een minus sum game.  De winnaars krijgen minder
> dan wat de verliezers verliezen omdat de industrie ook geld uit de
> markt haalt.
> De roulette in het casino is een minus-sum game omdat het casino 3 to
> 6 procent van de inzet moet verdienen.  Daarom is roulette op de lange
> duur niet te winnen.  U en ik kunnen in een minus-sum game
> terechtkomen wanneer wij onze weddenschap niet rekenen met elkaar
> afsluiten, maar door bemiddeling van een tussenpersoon.  Wanneer wij
> afrekenen heeft de verliezer 13 dollar verloren en de winnaar 7 dollar
> gewonnen en de twee tussenpersonen gaan lachend naar de bank.
> Commissies en marges zijn voor de handelaren hetzelfde als de
> belastingen voor een ieder van ons.  Een handelaar moet zijn
> commissionair en de machinerie van de beurzen onderhouden voordat hij
> iets kan verdienen.  Het beter doen dan het gemiddelde is eenvoudig
> niet goed genoeg.  U moet met kop en schouders boven de massa
> uitsteken om een minus-sum game te winnen.
>
> Uit het boek van ALEX elder "Verdienen  Met Beleggen"
>
>
> THE DEADLY ART OF STOCK MANIPULATION
>
> In every profession, there are probably a dozen or two major rules.
> Knowing them cold is what separates the professional from the amateur.
>
> Not knowing them at all? Well, let's put it this way: How safe would
> you feel if you suddenly found yourself piloting (solo) a Boeing 747
> as
> it were landing on an airstrip?
>
> Unless you are a professional pilot, you would probably be frightened
> out of your wits and would soil your underwear. Hold that thought as
> you read this essay
>
> ... because I will explain to you how market manipulation works.
>
> In order to successfully speculate, one should presume the following:
> THE SMALL CAP STOCK MARKETS PRIMARILY EXIST TO FLEECE YOU!
>
> I'm talking about Vancouver, Alberta, the Canadian Dealing Network and
>
> the US Over-the Counter markets (Pink Sheets, Bulletin Board, etc.).
> One could also stretch this, with many stocks, to include the world's
> senior stock markets, including Toronto, New York, NASDAQ, London,
> etc.
>
> The average investor or speculator is not very likely to have much
> success in the small cap crapshoots.
>
> I guess that is what attracted ME to these markets. I have been
> trying,
> for quite some time, to answer this question, "How come?" Now, I know.
>
> And you should, too!
>
> "While these speculative companies do not actually make any money, one
>
> can profit by speculating in these companies."
>
> That is the premise on how these markets are run, by both the stock
> promoters, insiders, brokers, analysts and others in this industry.
> That logic is flawed in that it presumes "someone else" is going to
> end
> up holding the dirty bag.
>
> Follow this premise all the way through and you will realize the
> insane
> conclusion:
>
> For these markets to continue along that route, new suckers have to
> continue coming into the marketplace. The conclusion is insane in that
>
> such mad activity can only be short-lived. I disagree with this
> premise
> and propose another solution
>
> What the professionals and the securities regulators know and
> understand, which the rest of us do not, is this.
>
>
> "RULE #1:
>
> ALL SHARP PRICE MOVEMENTS -- WHETHER UP OR DOWN -- ARE THE RESULT OF
> ONE OR MORE (USUALLY A GROUP OF) PROFESSIONALS MANIPULATING THE SHARE
> PRICE."
>
> This should explain why a mining company finds something good and
> "nothing happens" or the stock goes down. At the sametime, for NO
> apparent reason, a stock suddenly takes off for the sky! On little
> volume! Someone is manipulating that stock, often with an unfounded
> rumor.
>
> In order to make these market manipulations work, the professionals
> assume: (a) The Public is STUPID and (b) The Public will mainly buy at
>
> the HIGH and (c) The Public will sell at the LOW. Therefore, as long
> as
> the market manipulator can run crowd control, he can be successful.
>
> Let's face it: The reason you speculate in such markets is that you
> are
> greedy AND optimistic. You believe in a better tomorrow and NEED to
> make money quickly. It is this sentiment which is exploited by the
> market manipulator. He controls YOUR greed and fear about a particular
>
> stock. If he wants you to buy, the company's prospects look like the
> next Microsoft. If the manipulator wants you to desert the sinking
> ship, he suddenly becomes very guarded in his remarks about the
> company, isn't around to glowingly answer questions about the company
> and/or GETS issued very bad news about the company. Which brings us to
>
> the next important rule.
>
> "RULE #2:
>
> IF THE MARKET MANIPULATOR WANTS TO DISTRIBUTE (DUMP) HIS SHARES, HE
> WILL START A GOOD NEWS PROMOTIONAL CAMPAIGN."
>
> Ever wonder why a particular company is made to look like the greatest
>
> thing since sliced bread? That sentiment is manufactured. Newsletter
> writers are hired -- either secretly or not -- to cheerlead a stock.
> PR
> firms are hired and let loose upon an unsuspecting public. Contracts
> to
> appear on radio talk shows are signed and implemented. Stockbrokers
> get
> "cheap" stock to recommend the company to their "book" (that means
> YOU,
> the client in his book). An advertising campaign is rolled out
> (television ads, newspaper ads, card deck mailings). The company signs
>
> up to exhibit at "investment conferences" and "gold shows" (mainly so
> they can get a little "podium time" to hype you on their stock and
> tell
> you how "their company is really different" and "not a stock
> promotion.") Funny little "hype" messages are posted on Internet
> newsgroups by the same cast of usual suspects. The more, the merrier.
> And a little "juice" can go a long way toward running up the stock
> price.
>
> The HYPE is on. The more clever a stock promoter, the better his
> knowledge of the advertising business. Little gimmicks like
> "positioning" are used. Example: Make a completely unknown company
> look
> warm and fuzzy and appealing to you by comparing it to a recent
> success
> story, Diamond Fields or Bre-X Minerals. That is the POSITIONING
> gospel, authored by Ries and Trout (famous for "Avis: We Want To Be #
> 1" and "We Try Harder" and other such slogans). These advertising/PR
> executives must have stumbled onto this formula after losing their
> shirts speculating in a few Canadian stock promotions! The only reason
>
> you have been invited to this seemingly incredible banquet is that YOU
>
> are the main course. After the market manipulator has suckered you
> into
> "his investment," exchanging HIS paper for YOUR cash, the walls begin
> to close in on you. Why is that?
>
> "RULE #3
>
> AS SOON AS THE MARKET MANIPULATOR HAS COMPLETED HIS DISTRIBUTION
> (DUMPING) OF SHARES, HE WILL START A BAD NEWS OR NO NEWS CAMPAIGN."
>
>
> Your favorite home-run stock has just stalled or retreated a bit from
> its high. Suddenly, there is a news VACUUM. Either NO news or BAD
> rumors. I discovered this with quite a few stocks. I would get LOADS
> of
> information and "hot tips." All of a sudden, my pipeline was shut-off.
>
> Some companies would even issue a news release CONDEMNING me ("We
> don't
> need 'that kind of hype' referring to me!). Cute, huh? When the
> company
> wanted fantastic hype circulated hither and yon, there would be
> someone
> there to spoon-feed me. The second the distribution phase was
> DONE....ooops! Sorry, no more news. Or, "I'm sorry. He's not in the
> office." Or, "He won't be back until Monday."
>
> The really slick market manipulators would even seed the Internet news
>
> groups or other journalists to plant negative stories about that
> company. Or start a propaganda campaign of negative rumors on all
> available communication vehicles. Even hiring a "contrarian" or
> "special PR firm" to drive down the price. Even hiring someone to
> attack the guy who had earlier written glowingly about the company.
> (This is not a game for the faint-hearted!)
>
> You'll also see the stock drifting endlessly. You may even experience
> a
> helpless feeling, as if you were floating in outer space without a
> lifeline. That is exactly HOW the market manipulator wants you to
> feel.
> See Rule Number Five below. He may also be doing this to avoid the
> severe disappointment of a "dry hole" or a "failed deal." You'll hear
> that oft-cried refrain, "Oh well, that's the junior minerals
> exploration business... very risky!" Or the oft-quoted statistic,
> "Nine
> out of 10 businesses fail each year and this IS a Venture Capital
> Startup stock exchange." Don't think it wasn't contrived. If a
> geologist at a junior mining company wasn't optimistic and rosy in his
>
> promise of exploration success, he would be replaced by someone who
> was! Ditto for the high-tech deal, in a world awash with PhD's.
>
> So, how do you know when you are being taken? Look again at Rule #1.
> Inside that rule, a few other rules unfold which explain how a stock
> price is manipulated.
>
>
> "RULE #4
>
> ANY STOCK THAT TRADES HUGE VOLUME AT HIGHER PRICES SIGNALS THE
> DISTRIBUTION PHASE."
>
> When there was less volume, the price was lower. Professionals were
> accumulating. After the price runs, the volume increases. The
> professionals bought low and sold high. The amateurs bought high (and
> will soon enough sell low). In older books about market manipulation
> and stock promotion, which I've recently studied, the markup price
> referred to THREE times higher than the floor. The floor is the launch
>
> pad for the stock. For example, if one looks at the stock price and
> finds a steady flatline on the stock's chart of around 10 cents, then
> that range is the FLOOR. Basically, the markup phase can go as high as
>
> the market manipulator is capable of taking it. From my observations,
> a
> good markup should be able to run about five to ten times higher than
> the floor, with six to seven being common. The market manipulator will
>
> do everything in his power to keep you OUT OF THE STOCK until the
> share
> price has been marked up by at least two-three times, sometimes
> resorting to "shaking you out" until after he has accumulated enough
> shares. Once the markup has begun, the stock chart will show you one
> or
> more spikes in the volume -- all at much higher prices (marked up by
> the manipulator, of course). That is DISTRIBUTION and nothing else.
>
> Example: Look at Software Control Systems (Alberta: XVN), in which I
> purchased shares after it had been marked up five times.There were
> eight days of 500,000 (plus) shares trading hands, with one day of
> 750,000 shares trading hands. Market manipulator(s) dumping shares
> into
> the volume at higher prices. WHENEVER you see HUGE volume after the
> stock has risen on a 75 degree angle, the distribution phase has
> started and you are likely to be buying in at or near the stock's peak
>
> price.
>
> Example: Look at Diamond Fields (TSE: DFR), which never increased at a
>
> 75 degree angle and did not have abnormal volume spikes, yet in less
> than two years ran from C$4 to C$160/share.
>
> Example: Look at Bre-X Minerals (Alberta: BXM), which did not
> experience its first 75 degree angle, with huge volume until July
> 14th,
> 1995. The next two trading days, BXM went down and stayed around C
> $12/share for two weeks. The volume had been 60% higher nearly a month
>
> earlier, with only a slight price increase. Each high volume and
> spectacular increase in BXM's share price was met with a price retreat
>
> and leveling off. "Suddenly," BXM wasn't trading at C$2/share; it was
> at C$170/share.... up 8500% in less than a year!
>
> In both of the above cases, major Canadian newspapers ran extremely
> negative stories about both companies, at one time or another. In each
>
> instance, just before another share price run up,retail investors fled
>
> the stock! Just before both began yet another run up! Successful
> short-
> term speculators generally exit any stock run up when the volume
> soars;
> amateurs get greedy and buy at those points.
>
> "RULE #5
>
> THE MARKET MANIPULATOR WILL ALWAYS TRY TO GET YOU TO BUY AT THE
> HIGHEST, AND SELL AT THE LOWEST PRICE POSSIBLE."
>
> Just as the manipulator will use every available means to invite you
> to
> "the party," he will savagely and brutally drive you away from "his
> stock" when he has fleeced you. The first falsehood you assume is that
>
> the stock promoter WANTS you to make a bundle by investing in his
> company. So begins a string of lies that run for as long as your
> stomach can take it.
>
> You will get the first clue that "you have been had" when the stock
> stalls at the higher level. Somehow, it ran out of steam and you are
> not sure why. Well, it ran out of steam because the market manipulator
>
> stopped running it up. It's over inflated and he can't convince more
> people to buy. The volume dries up while the shareprice seems to
> stall.
>
> LOOK AT THE TRADING VOLUME, NOT THE SHARE PRICE!
>
> When earlier, there may have been 500,000 shares trading each day for
> eight out of 12 trading days (as in the case of Software Control
> Systems), now the volume has slipped to 100,000 shares (or so) daily.
> There are some buyers there, enough for the manipulator to continue
> dumping his paper, but only so long as he can enlist one or more
> individuals/services to bang his drum.
>
> He may continue feeding the promo guys a string of "promises" and
> "good
> news down the road." (Believe me, this HAS happened to me!) But, when
> the news finally arrives, the stock price goes THUD! This is entirely
> orchestrated by a market manipulator. You'll see it in the trading
> volume, most of which is CONTRIVED. A market manipulator will have
> various brokers buying and selling the stock to give the APPEARANCE of
>
> increasing volume and price so that YOU do start chasing it higher.
>
> At some point during the stall stage, investors get fed up with the
> non-performance of the stock. It drifts for a while, in a steady
> retreat, with perhaps a short-lived spike in price and volume (the
> final signal that the manipulator has finally offloaded ALL of his
> paper). Then, the stock comes tumbling down -- having lost ALL of the
> earlier share appreciation.
>
>
> Sometimes, with the more cruel manipulators, they will throwin a
> little
> false hope... giving you a little more rope so they can better hang
> you. Just after a severe drop, there will be a "bottom fishing"
> announcement which sends the share price up a bit on high volume,
> rises
> a little more after that and then continues to drift. Meanwhile, you
> keep getting "shaken out" through a cruel drip-drip water torture of
> the share price's slow retreat. Again, virtually every movement is
> completely orchestrated.
>
>
> "RULE #6
>
> IF THIS IS A REAL DEAL, THEN YOU ARE LIKELY TO BE THE LAST PERSON TO
> BE
> NOTIFIED OR WILL BE DRIVEN OUT AT THE LOWER PRICES."
>
> Like Jesse Livermore wrote, "If there's some easy money lying around,
> no one is going to force it into your pocket." The same concept can be
>
> more clearly understood by watching the tape. When a market
> manipulator
> wants you into his stock, you will hear LOUD noises of stock promotion
>
> and hype. If you are "in the loop," you will be bombarded from many
> directions. Similarly, if he wants you out of the stock, then there
> will be orchestrated rumors being circulated, rapid-fired at you again
>
> from many directions. Just as good news may come to you in waves, so
> will bad news.
>
> You will see evidence of a VERY sharp drop in the share price with
> HUGE
> volume. That is you and your buddies running for the exits. If the
> deal
> is really for real, the market manipulator wants to get ALL OF YOUR
> SHARES or as many as he can... and at the lowest price he can. Whereas
>
> before, he wanted you IN his market, so he could dump his shares to
> you
> at a higher price, NOW when he sees that this deal IS for real, he
> wants to pay as little as possible for those same shares... YOUR
> shares
> which he wants to you part with, as quickly as possible.
>
> The market manipulator will shake you out by DRIVING the price as low
> as he can.
>
> Just as in the "accumulation" stage, he wants to keep everything as
> quiet as possible so he can snap up as many of the shares for himself,
>
> he will NOW turn down, or even turn off, the volume so he can repeat
> the accumulation phase.
>
> In the mining business, there seems to always be another "areaplay"
> around the corner. Just as Voisey's Bay drifted into oblivion, during
> the fourth quarter of 1995 and early into 1996, the same Voisey Bay
> "wannabees" began striking deals in Indonesia. Some even used new
> corporate entities. Same crooks, different shingles. The accumulation
> phase was TOP SECRET. The noise level was deadly silent. As soon as
> the
> insiders accumulated all their shares, they let YOU in on the secret.
>
> "RULE #7
>
> CONVERSELY, YOU WILL OFTEN BE THE LAST TO KNOW WHEN THIS DEAL SHOWS
> SIGNS OF FAILURE."
>
> Twenty-twenty hindsight will often show you that there was a "little
> stumble" in the share price, just as the "assays were delayed" or the
> "deal didn't go through." Manipulators were peeling off their paper to
>
> START the downslide. And ACCELERATE it. The quick slide down makes it
> improbable for your getting out at more than what you originally paid
> for the stock... and gives you a better reason for holding onto it "a
> little longer" in case the price rebounds. Then, the drifting stage
> begins and fear takes over. And unless you have serves of steel and
> can
> afford to wait out the manipulator, you will more than likely end up
> selling out at a cheap price.
>
> For the insider, market maker or underwriter is obliged to buy back
> all
> of your paper in order to keep his company alive and maintain control
> of it. The less he has to pay for your paper, the lower his cost will
> be to commence his stock promotion again... at some future date. Even
> if his company has no prospects AT ALL, his "shell" of a company has
> some value (only in that others might want to use that structure so
> they can run their own stock promotion). So, the manipulator WILL buy
> back his paper. He just wants to make sure that he pays as little for
> those shares as possible.
>
> "RULE #8
>
> THE MARKET MANIPULATOR WILL COMPEL YOU INTO THE STOCK SO THAT YOU
> DRIVE
> UP ITS PRICE SHARES."
>
> Placing a Market Order or Pre-Market Order is an amateur's mistake,
> typifying the US investor -- one who assumes that thinly traded issues
>
> are the same as blue chip stocks, to which they are accustomed.
>
> A market manipulator (traders included here) can jack up the share
> price during your market order and bring you back a confirmation at
> some preposterous level. The Market Manipulator will use the "tape"
> against you. He will keep buying up his own paper to keep you reaching
>
> for a higher price. He will get in line ahead of you to buy all the
> shares at the current price and force you to pay MORE for those
> shares.
> He will tease you and MAKE you reach for the higher price so you
> "won't
> miss out." Miss out on what? Getting your head chopped off, that's
> what! One can avoid market manipulation by not buying during the huge
> price spikes and abnormal trading volumes, also known as chasing the
> stock to a higher price.
>
> "RULE #9:
>
> THE MARKET MANIPULATOR IS WELL AWARE OF THE EMOTIONS YOU ARE
> EXPERIENCING DURING A RUN UP AND A COLLAPSE AND WILL PLAY YOUR
> EMOTIONS
> LIKE A PIANO."
>
> During the run up, you WILL have a rush of greed which compels you to
> run into the stock. During the collapse, you WILL have a fear that you
>
> will lose everything... so you will rush to exit. See how simple it is
>
> and how clear a bell it strikes? Don't think this formula isn't
> tattooed inside the mind of every manipulator. The market manipulator
> will play you on the way up and play you on the way down. If he does
> it
> very well, he will make it look like someone else's fault that you
> lost
> money! Promise to fill up your wallet? You'll rush into the stock.
> Scare you into losing every penny you have in that stock? You'll run
> away screaming with horror! And vow to NEVER, ever speculate in such
> stocks again. But many of you still do.... The manipulator even knows
> how to bring you back for yet another play.
>
> What actors! No wonder Vancouver is sometimes called "Hollywood
> North."
>
>
>
> "FINAL RULE: A NEW BATCH OF SUCKERS ARE BORN WITH EVERY NEW PLAY."
>
> The Financial Markets are a Cruel, Unkind and Dangerous Playing Field,
>
> one place where the newest amateurs are generally fleeced the most
> brutally.... usually by those who KNOW the above rules.
>
> Just as I have a duty to ensure that each of you understand how this
> game is played, YOU now have that same duty to guarantee that your
> fellow speculator understands these rules. Just as I would be a
> criminal for not making this data known to you, YOU would bejust as
> criminal to keep it a secret. There will always be an unsuspecting,
> trusting fool whom the rabid dogs will tear to shreds, but it does NOT
>
> have to be this way.
>
> IF every subscriber made this essay broadly known to his friends,
> acquaintances and family, and they passed it on to their friends, word
>
> of mouth could cause many of these market manipulators to pause. IF
> this effort were done strenuously by many, then perhaps the financial
> markets could weed out the crooked manipulators and the promoters
> could
> bring us more legitimate plays.
>
> The stock markets are a financing tool. The companies BORROW money
> from
> you, when you invest or speculate in their companies. They want their
> share price going higher so they can finance their deal with less
> dilution of their shares... if they are good guys. But, how would you
> feel about a friend or family member who kept borrowing money from you
>
> and never repaid it? That would be theft, plain and simple. So, a
> market manipulator is STEALING your money. Don't let him do it
> anymore.
> Insist that the company in which you invest be honest or straight...
> or
> find another company in which to speculate. Your money talks in LOUDER
>
> volumes than any stockpromotion scheme. ALWAYS refuse any deal which
> smells wrong.
>
> Refuse to tolerate the scams prevalent in the financial markets. This
> can ONLY be accomplished by KNOWING and USING the above rules.
> Thoroughly COMPLETE your due diligence on a company before risking a
> dime. Dig up the Insider Reports to find out who is blowing out their
> paper, how often they are blowing out their paper and whatever
> happened
> to their "last play."
>
> Begin to use this as YOUR rule of thumb: If the insider's paper is
> really worthless, then avoid it. Find another's whose paper DOES hold
> promise and honest possibilities. In these small cap stockmarkets, you
>
> are investing more in the INDIVIDUAL behind the play,than the
> "possibility" of the play itself. Ask yourself before speculating:
> Could I lend this person $5,000 for a year and hope to get it back? If
>
> not, then don't! Do it for your own good and the good of everyone else
>
> who is so foolish as to speculate in these financial markets!
>
> The truly sane and only somewhat safe solution to all of this: FIND
> GOOD COMPANIES IN WHICH TO SPECULATE AND GET INTO THEM AT THE GROUND
> FLOOR LEVEL. Anything else is criminal or stupid. This is a case where
>
> there really isn't a gray area. It's either Black or it's White. The
> company and its management are scamsters or they really intend to
> bring
> value to their shareholders.
>
> Author Unknown
> If you know the Author of this article please contact
> admin@netbored.com
>
>
>
> Does this  article  comes from bloodinthestreet.com?
Re: het spel van verlies
#322
Author: Koen Robeys
Date: Wed, 23 Apr 2003 18:36
68 lines
4550 bytes
"HollidayTime" <HollidayTime@lycos.nl> wrote

> Ik geef u heeft helemaal gelijk.
> Iemand moet toch de rekening ( lees:
gebouwen,winst,opties,goudenhanddruk )
> betalen.

Uitstekend, we nemen even aan dat we leven in een wereld waarin er van
bankiers en ander gespuis geen sprake is. U of ik hebben intussen met hard
en eerlijk werk iets verdiend, en omdat we bovendien zuinige mensen zijn
hebben we nu "iets" opzij gezet.

Eerst en vooral, waaruit bestaat "iets"? Geen bankrekening, natuurlijk, en
vermoedelijk zelfs geen bankbiljetten, vermits we leven in die wereld waarin
er geen banken bestaan. Maar laten we aannemen dat er zoiets bestaat als
metaalgeld: muntstukken in koper, zilver en goud, en dat ons fortuintje
daarin zit.

Wat doen we met onze gouden Napoleons en Kruggerands? We kunnen ze
natuurlijk in onze sok of matras stoppen: zero interest, en maar hopen dat
er geen inflatie komt.

Veel beter is dus een belegging zoeken waardoor ons kapitaaltje ook een
opbrengst vertoont. Aangezien er geen banken zijn stappen we zelf de straat
op, we bezoeken zelf de kandidaat-ontleners, we beoordelen zelf hun balans
en resultatenrekening, en we ontcijferen zelf hun businessplan...

En we halen er nog zelf de bedriegers en praatjesmakers uit, ook, zeker?
Probeer je maar eens voor te stellen hoeveel rendement je op je spaarcentjes
moet halen om *hier* een zinvolle activiteit van te maken.

Bekijk nu even een "groot" bedrijf .Zo'n bedrijf heeft "altijd" meer cash
geld nodig dan het de hele tijd genereert, en dat kan het alleen opvangen
door instanties te vinden die de gaten met voorschotten opvullen. Maar in
onze verzonnen wereld zijn dat natuurlijk geen banken, want die zijn er even
niet.

Dus die bedrijven moeten nu zelf personeel de hort opsturen om overal met
brave particulieren als u en ik te onderhandelen over hoeveel spaarcentjes
ze kunnen krijgen, voor welke periode en aan welke voorwaarden.

Vraag je, met andere woorden, af hoeveel de kost van het kapitaal, is in
omstandigheden waarin er geen banken zijn.

De belegger haalt in die omstandigheden een rendement dat dicht bij zero
ligt, kosten van iets beter te doen meegerekend. De ontlener zal daarentegen
tegen kosten aankijken die gemakkelijk in de tientallen percenten oplopen,
en ik druk me nog zachtjes uit (in werkelijkheid zal elke economische
activiteit die de omvang van een middelgrote bakkerij overstijgt, zo goed
als onmogelijk zijn).

Welnu, als een belegger plaatst aan nul percent, en een ontlener ontleent
aan 30%, dan kan een bank uitkomst bieden. De bank kan aan de belegger 1%
bieden en het geld aan de ontlener aanbieden aan 29%, en ze zullen *allebei*
1% beter af zijn dan wanneer er geen banken bestonden.

En de bank zal het verschil tussen 29 en 1, zijnde 28%, opstrijken en
*daarmee* personeel betalen om balansanalyses te maken, spaarboekjes in te
vullen en de bedriegers van de eerlijke ondernemers te onderscheiden. Dus
niet met het geld dat ze verdienen op de kap van de beleggers en de
ontleners betalen ze "gebouwen, winst en opties", maar met geld dat ze
verdienen door de markten effici๏ฟฝnt te laten werken.

Het is opvallend dat wij, die ons in 1999 gouden bergen hebben laten
wijsmaken, nu in donkere tijden bereid zijn ons de hallucinaties van
uitgerekend Straver op de mouw te laten spelden.

Beste groeten, Koen
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