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Gringotts Bank, most traders & fund managers don't have a good handle on how the market works, you think they would should know but they don't.

This will turn into a long post that would be boring for others to read, so I'll keep it as succinctly as possible by giving basic examples that others many understand.

How a business makes money

1. They Buy right (at wholesale prices)

2. The sell right (at retail prices)

3. Control their expenses 

4. Pay their Tax obligations

5. Pocket the balance

The manipulators

1. Buy right at wholesales prices (the low price)

2. Sell right at retail prices (the high price)

How do traders lose money ?

1. They buy at Retail (at the top of the price range)

2. They sell at Wholesale (at the bottom of the price range)

3. Manipulators know where your stops are (its called gunning for stops)  all they have to do is force to that level, emotions will do the rest.

You've seen the charts.

1. The prices are pushed up

2. The prices are dragged down

3. Wash & repeat (that's what causes the Zip Zap pattern you see on the charts)

The Fund Managers

1. Their business model is to make money for the company & surprise, surprise they don't make money for you (that's not their job)

2. They track Indexes by only buying non volatile companies & they are after the dividends (capital growth is a bonus)

3. Their business model is to keep you fully invested (their profits comes from funds under management)

4. The funds under management attract a management fee, whether you win or lose money, they don't care (its not about you)

Investment vehicles

Safe long term investments vehicle the type 'Fund Managers' use have a low payoff ratio (that's why the lower than expected performance results)

Ocean Cruises & Industry/Retail Funds are the same

Ocean Cruises & Industry/Retail Funds can't turn sharply, they can't zip here & zip there like a little speed boat can (that's us by the way, we are the speed boats) & for Fund Managers to change course it's not in their DNA (that's a lot of effort for them to change course, chasing returns just for members , WHY - there is no payoff for them)

CommSec

I've posted about CommSec ringing me, alerting that I'll shift the market with the size of some my positions (think about this - are they ringing me for my benefit or for theirs ?)

They see both sides

CommSec are active traders, I've taken their trades & they have taken the other side of mine, they do market swaps all the time, the problem as I see it is that they get to see both sides of the market & allowed to be active players ( who would have thunk it ! )

This is a quick & dirty response to a much larger problem. I know all this & I still trade, picking up the splashes the big boys makes it profitable for me. (I see the move, I jump on & ride that sucker till I see them change course, than I'm off the bugger)

Skate.