11/01/2013

How to run a stock market to the ground?

Stock markets around the world have been profitable institutions for centuries. As a collector of commissions and fees for listing and trading, it is like an evergreen ATM, always making money. The Great Depression could have temporarily halted the trading activities of a stock market, but they still picked up and ran again. It is quite near impossible to run a stock market to the ground. It would take tremendous ingenuity or stupidity to be able to do so.
 

After twenty years in the industry I have discovered how a stock market can actually be run to ground zero by a special recipe. Let me try to put this into simple steps for anyone who has the chance to do it, like how to assemble 炸蛋, fried egg, DIY online.
 

1. Invite all the big funds to play in the market.
 

2. Consult them on how to fix a system so that they can take full advantage of their high speed computers to make profits from the small investors.
 

3. First thing, allow them to hook their computers into the exchange system so that they would know what other traders/investors are buying or selling. Don’t tell people this is unfair. Better still don’t tell anyone if possible. Don’t talk about it is the best.
 

4. Reduce the commission to as low as possible, even free if can, so the big funds can trade in very big volumes without cost or with minimum charges. Then they can play big big and pay more fees to the exchange while making a killing at the same time. The small investors are there to be cannon fodder and dispensable.
 

5. No lunch break so the computers can keep on running throughout the whole session. Having lunch break is very disruptive to the computers and troublesome for the operators. Then bluff the broking houses no lunch break increases trading volumes, continuous trading means more time to do business.
 

6. Create a system to allow the funds to borrow scrips just in case they oversold some positions and need to cover for a short while. So the funds can long or short to make money either way. The trick is to protect the big funds while they eat up the small traders.
 

7. Deregulate, have as little rules as possible. No rules better still. If got rules, pretend to have dementia. Some say one eye open one eye close.
 

8. If the funds violate trading rules like churning, buying and selling without change of ownership, cornering the market, creating a false market, just ignore. Pretend not to know, not to see. Pretend nothing is wrong. The big funds must be given the fullest support to generate volume and liquidity in the market and of course to make money.
 

9. Make the small traders pay higher commission rate so they cannot get out quickly without losing or cannot make profit unless the price has moved several bids. This will allow the big funds to hold them captive and take advantage of small changes to make money, like push up one bid, push down two bids.
 

10. There is no need to provide a fair and level playing field. Bring in the HFT to make profits by skimming the differences that the small investors cannot see and not chance to see. It is a given that the HFT is sure to make profits like the big funds. No need to care where or who pay for their profits. Zero sum game? Sure.
 

These ten simple steps will definitely run a stock exchange to the ground in double quick time. All the small traders will be scooped up and hung to dry without knowing what has happened. And when there are no more small traders to slaughter, move on.

23 comments:

  1. if so, WHY U STILL IN THESE QUICKSAND?

    how are you going to advise your clients in view of your professional judgment?

    is contra trading contributing to the misery of many to benefit some?

    with the advent of scripless trading of shares, the FEW big boys call the shot

    name should be changed to:
    kuching and tikus exchange

    knnccb ... over
    tis my callsign

    ReplyDelete

  2. sorry....

    I have only ONE step to share with you to have a better chance of making money in the stock market....

    step 1: INVEST and never speculate!

    cheers.....

    ReplyDelete
    Replies
    1. Hi bro, invest in stocks?

      Blue chips??

      No such thing as investments in stocks and shares.

      Even blue chips can go kaput!!!

      Once brought fifty lots sing and tell shares at 3.60 when they go into partnership with Optus.

      Next three years stagnant at two plus.

      Sold off at par at 3.60 after nearly three to four years.

      Cpf statement shown loss of nearly 25k after wash hands in do called investing in shares.

      When you buy shares you are already speculating, where got such thing ad investments.

      Delete
  3. If you are still a small trader, you are a fool who deserves to lose money lah.

    The game's long changed. Nowadays you'd better be a damn good quant and have access to fierce tech -- welcome to the new world, the "Revenge of The Geeks".

    And no, it's not going back to the old days. The Geeks are in-charge. and they'll change the game, and lock it in.

    ReplyDelete
  4. Hi rb .
    Can sgx go 24 hrs ????

    Can they do currency selling n buying???

    For those playing indexes can sgx also come out something like hdb price index? Ura property price index ? Coe index ? Tis give investors added avenue to do hedging ot punting watever la ...

    ReplyDelete
  5. @November 01, 2013 11:07 am

    so ....

    CAN INVEST IN BLUE-CHIPS NOW?
    else when to INVEST?

    hahaha

    knnccb
    ... my call-sign ... lah

    ReplyDelete
  6. You asking the bookie for another bet and the odds?

    ReplyDelete
  7. "how are you going to advise your clients in view of your professional judgment?"

    Follow PAP's way, if you can't convince your client, confuse them ?

    ReplyDelete
  8. Small investors can abandon the stock exchange to stop falling victim into this kind of unfair trading. Otherwise, they can always hack those systems.

    ReplyDelete
  9. It is rare, in modern Singapore, to have someone as low down as Anonymous. Using KNNCCB in someone's blog without the balls to disclose his name is simply disgusting.

    ReplyDelete
  10. Are not the big funds here to help the stock exchange to increase liquidity and market volumes to make the small investors happy and make money as well? The exchange should pay the big funds for their charity and generosity and effort to make this such a great exchange.

    And now this is not enough, the exchange is going to bring in HFT to make the market even more liquid and lively. The HFTs and big funds must be crazy to spend so much money to bring in their super computers to help the exchange.

    Too good to believe. And why are all the investors losing their pants and running away from the stock market? All lost all their money with the help of the big funds and HFTs brought in by the exchange to do charity work.

    ReplyDelete
  11. Hi
    I'm from PAP. I'm on your side.

    Hello.
    I'm from HFT. I'm here to help you make money from your stock investment.

    ReplyDelete
  12. Hello Singaporeans
    I'm FT. I'm here to create good jobs for Singaporeans.

    Hi!
    I'm GST. I'm here to help the poor.

    HFT, FT, GST and PAP.
    We are all one big familee.

    ReplyDelete
  13. Hey what about us?

    I'm COE. I'm here to reduce road congestion.

    I'm ERP. I'm here to double confirm that there will be no road congestion.

    I'm ARF.
    I was here first to reduce road congestion too.
    After COE and ERP, I'm just as surprised as all you Sinkies that I am still here.
    If I were a Singaporean worker, I would have been made redundant and sacked a long time ago.
    Fortunately, I'm a tax.
    And a Singapore tax never goes away.
    We just keep adding to the family of taxes.

    ReplyDelete
  14. wah piang eh ...

    certis cisco better,

    first try to convince,
    else try to confuse
    if both failed

    try to CON

    ReplyDelete
  15. @Jimmy said...


    u have a problem with MY CALLSIGN?

    knnccb

    now for you only ...

    F U C K OFF ....

    ReplyDelete
  16. @Jimmy said...

    r u the short botak who usually write to the shitty times forum??

    knnccb

    ReplyDelete
  17. @Virgo 49 said...

    heh heh .....

    experiences made you a wiser person

    not even ... bank deposits in BIG BANKS, insurance policy.

    like the LIBOR fiasco, most of the daily turnovers in the financial markets are by "syndicates"

    knnccb (dun be offended; it's my callsign/ avatar :- )

    ReplyDelete
  18. Hi Jimmy welcome to the blog.

    And hi knnccb, welcome to the blog too. Sorry I don't feel comfortable addressing you as knnccb. But since you called yourself knnccb, that is the only way I can address you: )

    Darling will be better and everyone will be calling you darling.

    ReplyDelete
  19. Lost some peanuts; really peanuts and that was all i had.
    No bank account and pocket empty, now the best thing for me is to see the stock exchanges raze to the ground.

    ReplyDelete
  20. How dull Sinkies can be. How about calling yourself bastard? Think it sounds nice.

    ReplyDelete
  21. @November 02, 2013 9:38 am

    bastard? ..... sound great too?

    actually we might be? if we believe the the adam and eve fairy tale.

    mankind had been committing incest?

    knnccb ... tis my callsign

    ReplyDelete
  22. hi RB ..

    you are really magnanimous,

    i feel great being call knnccb, that where all human being come from (well, almost)

    it quite similiar to my friends using the infamous hokkien greeting to welcome friends

    just call "knnccb" I will appear ASAP, just the story of the genie in the bottle, just rub it.

    but hope u dun rub yourself, i will not appear!!


    knnccb ...

    ReplyDelete