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Why Stock Trading is Looked as a Dirty Business

February 25th, 2014

Manipulation

A lot of mom-and-pop or regular investors don't understand the concept of manipulation until they've been trading for a while...

The large institutions, huge hedge funds, and big money managers are the ones who really move the stocks. We're not talking about the people trading millions of dollars – we're talking billions of dollars and large capital amounts to trade on a day-to-day basis.

If the stocks are heading south, these large institutions have the capital to fake you out. They can buy a ton of shares, pop it up, and deceive you into believe the stocks are rising.

They manipulate the stocks, so you get in when they want to get out or vice versa. Manipulation is a normal part of the stock market game, and it's important to be aware of it.

Contributions

There's no tangible productivity that the world can grasp. Stock traders aren't out there building churches, repairing cabinets, laying roads, or creating something people can see or use.

However, stock traders are creating liquidity for mortgages, bonds, treasuries, and more. Stock traders are providing a good service, but it isn't always noticed out in the world.

People definitely feel the effects of stock trading, but they do not always attribute it back to the stock market or stock traders.

Greed

Many people see the huge hedge funds moving and making billions of dollar, while no physical productivity is exerted – this leads to the greed and unfair factor...

Since they aren't necessarily doing anything in terms of physical productivity, the greed and unfair factor kicks in. The more people think about the 'inactivity' and the more the hedge funds capitalize on their assets, the more people think of it as a dirty business.

Publicity Due to Money

Things get very public when crimes do happen...

There is so much money, press, and media behind scandals in the stock market as in the Martha Stewart or Bernie Madoff cases. Because a lot of money was involved, these scandals get hyped up a lot.

In my opinion, murder is a more dangerous and high-profile act in comparison to stolen money. But because there's a lot of money behind stock market scandals, there's also a lot of media coverage behind it.

The media hypes up all the negative stock market news – making it seem like a dirty business through-and-through.

These are the four main reasons, in my opinion, why stock trading is considered a dirty line of business. In reality, a lot of aspects of the stock market just get over-hyped when really it is not that bad.

Author: Sasha Evdakov

Sasha is the creator of the Tradersfly and Rise2Learn. He focuses on high-level education speaking at events, writing books, and publishing video courses on business development, internet marketing, finance, and personal growth.

I'm Sasha, an educational entrepreneur and a stock trader. In addition to running my own online businesses, I also enjoy trading stocks and helping the individual investor understand the stock market. Let me share with you some techniques & concepts that I used over the last 10+ years to give you that edge in the market. Learn More

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This website and content is for information purposes only as Rise2Learn, TradersFly, and Sasha Evdakov are NOT registered as a securities broker-dealer nor an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Rise2Learn, TradersFly, and Sasha Evdakov cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Rise2Learn, TradersFly, and Sasha Evdakov in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Rise2Learn, TradersFly, and Sasha Evdakov accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.