The myth of a vibrant stock market

If we lower the commission rate there will be increase in trading volumes which will translate into more business and more commission. When there are more foreign funds operating and trading in our stock market, trading volume will increase, more vibrancy, oh I forgot, more oomph, and sure more business, and more commission. When there are more stocks, derivatives, structured products, there will be more business, more commissions, and dunno more what.

When our stock market is linked to more stock markets, the sky will fall down, money will fall into the laps of everyone as business across the world can be done here. We will be a one stop business and financial centre and all will be doing roaring business. All the stock brokers and broking houses and all the supporting staff will be looking towards a windfall, not a downfall.

And we are nearly there, and daily trading volume is in the billions. And commissions must also be in the millions at least. And stock prices must have shot through the roof with such vibrant trading activities. The phones must be ringing non stop and remisiers will have no time for lunch. Yes, extended trading hours, no lunch break, business will go up by at least 10%.

What is real? Many stocks are now penny stocks, quite a number are worth less than 1c and listed in the main board. And where is the commission? Where are the investors and traders? Who is doing all the trading? Machines, really? But never mind if the machine can generate more trading and more commissions. Good times are here.

We have done everything right according to the norms and practices and conditions of Wall Street. We even invested in the world’s fastest computer to facilitate greater trading volumes in micro seconds. The best fund managers are all here trading in our market. Everything is going to be right. Trust me. Now be patient and wait, just wait.


Stock and Commodity Tips said...

The price of stock falls if the volume of shares high and if the volume is less then share price increase.

Anonymous said...

A virtual stock market does not need traders and investors, only machines to buy and sell and maintain a high trading volume.

Anonymous said...

If by now they still can't figure why the market is doomed, the market will be doomed.

Maybe they know but don't know what to do as no one dares to tell the emperor he got no clothes on.

Anonymous said...

Business based on pieces of toilet papers will ultimately HAVE to kiss the shit.

The unfortunate thing about the shit is that many gullible ones got to live with the papers holding the shit.

Last but not least, some lands will also get into shit becos of paper trading.

Chua Chin Leng aka redbean said...

The Americans have messed up the stock market mechanism so badly that it is very hard to reverse the process. Only have to wait for it to hit the end of the road.

China must not follow this failed system and let Hongkong and Singapore to go down with Wall Street and London and the rest of Europe. A fake is a fake.

Anonymous said...

How could they allowed computers to trade against small investors? This is criminal!!!!!

Anonymous said...

Was anyone forced to invest in stock/sdhare?

All the buyers bought with their
eyes opened wide wide, right?

Anonymous said...

What is happening to the stock market is like what has happened to the MRT.

When the dam bursts, nothing can hold back the water any more.