Wednesday, September 10, 2014

the hidden truth of trading

there is an unholy question which many avoid, many ignore, many distrust and few acknowledge
"does insider trading happen?"
well, well, well!!!
what a question....
it's something like asking
"does betting happen in cricket?"
o my my!!!
what do i say!!!
in my humble understanding
trading is "meant" to be "insider trading" by the "big" guys
for the majority, the unsuspecting retail traders, the public, the masses
it is 99.9% pure and holy!
--
how many executives of a company know what the numbers of the company's quarterly figures are going to be?
how many officials of a govt department know what the new policy or decision is going to be?
does nobody know a judgement before the judgement?
does nobody know a strategic clearance?
does nobody know a coming or going order?
doesn't the big mafia which is funding a terror network know when what is going to happen?
is that mafia or entity so naive that it won't take "benefit"?
does any new discovery happen in one eureka moment?
does any bank fail in just one day?
the examples are not in dozens or hundreds
they are in millions
there is a very thin line between information sharing and insider trading.
with the corruption at all times high globally it is anybody's guess as to how much secrecy is being / can be maintained in above matters.
some experts are of the opinion that just as the secondary market is bigger than the primary market, insider trading gains are bigger than the primary market gains! so much so that the primary market exists because of the secondary or tertiary (insider) market!!!
how do big investment banks / hedge funds gain edge over competition competing for billions of dollars worth AUM (Assets Under Management)?
if u think that only trading skills are being used, then god bless you!
honestly is too costly and ineffective road for the financial world!!! 
there is more inside to the trading than outside!
"they" know what is going to happen before it happens!!!
the "they" here is a class, not an individual or one institution.
insider trading is a global omnipresent phenomenon.
the one who gets caught brings a bad name to everyone who is doing it "nicely" and "professionally".
insider trading is a big truth like some dirty professions which nobody wants to admit acknowledge or discuss.

1 comment:

autostrada said...

Insider trading was, is and will remain in the markets. There will always be men with information before it gets to the world... and are willing to take action in the markets.... very rightly said Jagmohan ji.... saw so many posts.... thank you again for your description of the market.