7/25/2009

What integrity to protect the small investors?

We want fairness, fair odds to trade in the stock markets, to win and lose fairly. We demand a fair trading system and fair treatment from the regulators. No loaded dice in the stockmarkets. These are the minimum conditions that small investors should expect from the stockmarket trading system. Allowing a trading system to be loaded against the small investors is not only unfair, but CRIMINAL. It is a crime amounting to cheating or collaborating with the cheats to rip off the small investors. There is a very revealing article in the ST today, of course it must come from the gods in America, in Wall Street, from the New York Times. Our demigods and immortals are blind or ignorant to such revelations. Even if they do, they won’t make a whimper of it. The best they could do is to copy an article, like this article, and innocently push it out to the public. For what? To educate who? High frequency trading moves in blink of an eye ‘Critics say it offers unfair advantage over traditional trading.’ The big boys, hedge funds, are making millions and billions by the use of sophisticated trading systems and computer programmes to trade against the small investors. And the verdict is simple. They win and the small investors lose. Programme trading has been put in practice for many years with the consent of the regulators who knowing very well that it is unfair to the small traders. They are accomplices to the crime of robbing and cheating the small guys. Period. Not only that the big funds have technology on their side, the trading rules are also on their side, and aided by a big war chest, the unfair advantage they have over the small investors is unimaginable. Why were they allowed to participate in an unfair game where integrity, honesty, transparency and fair play are fundamental principles of the whole trading system? They provide volumes, they churn up volumes, giving the fictitious impression that the market is active and trading with high volumes. It was all a big farce. It was all programme trading that contributes to the high volume, buying and selling at the same time. Syndicates manipulating the stockmarkets are frown upon and apprehended for cornering the market, for market manipulation. Is programme trading in the same league? Where is the integrity to ensure a level playing field for all? Where is the integrity to protect the small guys? Or is it another case of immoral morality, exploiting the innocent small guys with a loaded dice?

8 comments:

Anonymous said...

The ONLY PLACE where there is integrity is in the IMAGINED WORLD OF NIRVANA(Heaven)!

Anonymous said...

It is always the big guys with big plans who are destroying the world. Who put in place all the loaded dices, all the systems, built all the casinos. What is their purpose?

In the end would they allow the small guys to ask them to put up systems to frustrate their grand plans?

I am not too optimistic about that.

Lost Citizen

Wally Buffet said...

Hehe,

Another perennial favourite rant of yours Beanie. Small guys got 4 D and Toto and Mahjong mah. They are better off to leave the stock markets, forex and commodities markets to the knowledgeable and resourceful. Serious investing is for the professionals not just someone out from Investing 101. Oh, less I forget, the novice can also line up now at the property launches. Sure to make money one.

Wa, last week real busy one for me cashing in the chips. Better than the casino with 10 to 1 odds of making money.

redbean said...

without the small guys there is no one else to dupe.

Wally Buffet said...

Er....Bro. Who should get the blame if the small guy insists on leaving the money at the doorstep?

Wally Buffet said...

But don't worry too much about the mom and pop in the local stock market. We are still very technologically behind and the market is so small that the high frequency algo guys are not really very interested. The killing is in real financial markets like the NYSE. And soon something will be done as someone suggested:
“But we’re moving toward a two-tiered marketplace of the high-frequency arbitrage guys, and everyone else. People want to know they have a legitimate shot at getting a fair deal. Otherwise, the markets lose their integrity.”

redbean said...

we have a govt don't we? we have a govt that is supposed to look after the small guys and ensure a level playing field don't we?

what if, i say what if, the govt does not care a damn about level playing field or the small guys losing their nest eggs?

what if, everyone is out to cheat and dupe the small guys? then where is the integrity?

immoral morality?

Anonymous said...

Then let the market goes topsy turvey and the country rots loh !

Die, die lah !