Sunday, December 13, 2009

How The Stock Market Is Manipulated By Investors Today

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I've been talking off and on about the appearance of the stock market manipulation by investors today. I'm a skeptical person at heart and when it comes to stock market investing today, I am a big believer that it is done day in and day out. The people that pay the price for this kind of manipulation are the small time investors like you and me. I am always surprised at the recommended buys that brokerage houses recommend for one and I think they do it because the big money needs buyers so they start promoting certain stocks. But if this is the case where is the evidence. It is extremely hard for the average investor to prove it.

I tracked down this video on youtube that has Jim Cramer talking about exactly what he would do to manipulate the market. It was nothing in this interview to talk about using millions of dollars of investors money to do just that. This is the main reason that I am a big advocate of doing your own investing today. If a guy like Cramer can come out and blatantly say that he did it, and how easy it was, can you imagine all of the other things that they are doing. And, then the Bernie Madoffs of the world can bilk millions out of investors. Who do they throw in jail? Martha Stewart. It doesn't make any sense. The reason they throw Martha in jail is to make an example of an individual to us small time investors to keep us in line. Meanwhile the corporations just get richer.

So how do you combat this outright manipulation. By doing what they do and not what they say. The tools to see when stocks are being manipulated are readily available. All you need is a stock chart and an Investor's Business Daily. What you have to do is start seeing the signs of buying into a stock. It shows when the value of a stock closes higher on higher volume. These are signs of institutional buying which you want to join in on. William O'Neil explains it completely in his CANSLIM strategy.

Spend some time studying the techniques found in How To Make Money in Stocks and stop paying attention to the media. They do not check their facts and only report what was said in the media not what is true. Spend your time research the market on your own and once you learn how it works, you are one step closer to being a successful investor in today's environment.

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