Good morning Joe - You read me half right -
I do have an interest in the market - NOT FOR SELF BUT AN INTEREST FOR ALL.
An interest to understand the inner workings and how things make a stock move - actually i'm facsinated with it - no not bent on it - but it does intrigue me - to the point of asking why things are the way they are - and could it ever be better ?
WHY ?
Well - i think there's a better way - for all to be happy. Seems the markets are at an odds of bottoming out - and stocks haver dropped -- and how does one to encourage more investors to invest in such markets - better yet - how did they ever get this way? And once they do bottom out - what are the new atrributes of the markets - the cause and effects - and what evolves once these markets do simmer - do traders become more vicious ? do they think of self only instead ofcompany's interests of company wanting to gain - but how- if the company isd market dependent ? If one company faulters - say i nthe metals markets - does it tend ot infect other companies -and a snowbal leffect begins ? what safe guards are in place for such cause and effects ?- to prevent down turns and vicious market - where traders panic and prices get driven down - to the poiint where no one kmnows what valuations are suppose to be - and one only needs to look at markets prior - say 10 years ago - were some of the same companies valued higher ? so what makes one look at a company now with same assets and say - its only worth the pennies that it is ? what really sets the tone ? traders ? or ?
I find if its left to the traders - it then becomes a case of - the traders only looking after themselves and at the expence of a company being traded to an oblivion -
If a stock drops - and the market cap drops - then how does this reflect an accurate valuation - especially if the company is worth more -but due to greed or trader delighting in the want of a stock at a lower price - how can this be good for a company or echange or market - when it works against the company that's listed on with in the market.
I feel it doesn't - as it works against the company - which if one sets it apart - from all the appendages - only wants t osucceed - but has al lodds against it to succeed.
Hnece - i think theres a better system for al lparties to be happy. No - not a singular interest for a singular gain - but an idea - with an entirely all new approach that safe guards the markets -= safe guards the companies - and a system that governs the stocks that al lcould agree upon - and i've given this an aweful lot of thought -
It would have to be a nuetral unbiased program - that govern the stocks - moving them without the influence of traders - thus keeping the investing concept - to investing and not a wild game.
Add to this - to full proof it - more governence is needed - on the trading front - a few more rules - and im sure most investors who trade daily would not be in favor - but if such implementations were introduced - it would provide stability - less volatility - and why not ?
These are companies who are market dependent - they can't run or grow a business at the expense of wild traders that have not the capacity or mindfulness of a company trying to grow and gai nand - the outcome is a benifit for the over all economy.
The magic solution - is to govern more - and to add a few more rules- and to eliminate a few of the exisiting rules - shorting and day trading -
and what i feel would traanspire - would be a stability - less volatility - company's could move forward with less stresses of not worrying about their SP - itwould create less opportunities for a trader to damage a comkpany - and thus - you would have a market that would never fal lfrom a cliff- al lbecause its governed to a degree of still being investor interest moving - but with an governence of a computer program that moves stocks fairly ....
Who would not want such a trading platform to trade on ?
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You wake - and your stock which is attached to a larger sector gets a annual report and the entire sector has grown - result ? your stock moves up -
your company trades in a foreign currency - the result ? your stock goes up
your company presses out good news - the result the stock goes up
your company presses a bad new report - less profits or other - the stock goes down .
there would have to be a compliance for all companies to report their news or press releases by - in order to deter companies from fudging their reports to keep it fair. and such reporting are simply tabulated by the computer to gage if the company has excelled or not.
Keeping the status quo - will begt what ? worry - stress - fear - and a market that never rises only lowers - no investors entering the markets for fear of loss - and what do al lthese attrributes promote ? absolutely noithing..... but if a few changes were made - it would bring hope - stsability - and a governence for a market to get where it is now - and it would help companies nothinder - it would promote investors to invest not deter....
I don't vclaim to know all the answers- but perhaps my limited insight - via limited trading experience brings some sort of light to the table - you know - being new to the markets - seeing things as theyare - for what they are - and not a trader thats been in themarkets for years - and perhaps conditioned to the point of not recognizing what is ?
I think i would like such a computer system... Simple to design - fair to all - simple pufg in to all stocks - and it benifits all. More imnportantly - it just makes sense - especially if it corrects alot of the issues - like a stock market never crashing - listed companies protected more - and that it promotes more investors to invest - and whe na gain or loss happens for a company its treated fairly - but an unbiased program - thats reason enough.
Just ideas - and perhaps i'm entirely wrong.
Cheers !