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.
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.
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.