RE:Market ParticipantsVery interesting read!
starsearcher40 wrote: Ok, I'm going to be a little blunt here. This is for the benefit of newbies especially.
You are in the stock market. It IS the filthiest playpen on the planet. Don't think it's fair, or nice. It's rarely either of these. Know that you are at the BOTTOM of the food chain, and that there are those with far greater access and money who will happily eat you alive. Retail is like chum for sharks. YOU are retail.
Not all market participants are long. The share price at any given moment is the sum thoughts of ALL participants...longs, shorts, swing, buyers and sellers. None of the participants are more worthy than others. None are more valid than others. ALL are here to make money. Period.
It is a newbie stance to cast longs/shorts as white hats or black hats, good guys and bad guys. Stocks go up. Stocks go down. Money can be made on both sides of the trade. There will be gyrations around any "true" price, both up and down. There will be irrational exuberance..bubbles. There will be insane panic selling....capitulations. Get used to it, and play it well.
Eventually, the stock "rights itself" to find equilibrium, and will overall go up or down accordingly. If you don't like the gyrations, go buy a GIC and call it a day.
But if you're going to play in this cesspool call the stock market, you better get a thick skin, big balls, and razor sharp skills to know what is going on and why.
Ok, sermon over. Stop whining now.
From one who has been at it for over 40 years and learned all the real lessons the hard way. :)
p.s. Truly, all of the above is for your benefit. No disrespect intended whatsoever. Know your place and where you stand, and you are on the path to be doing just fine.