What is Market Manipulation?
Market manipulation is a deliberate attempt to interfere with the free and fair operation of the market and create artificial, false or misleading appearances with respect to the price of, or market for, a security, commodity or currency. The "professionals" have to buy at the bottom of the market and then sell at the top. To achieve this they have to move (foment) the markets up and down in cycles. They use many techniques and devices ranging from media management and distortion to rumor spreading through the media, multiple order distortions to naked shorting. Their overwhelming objective is to wrong foot the retail trader and investor - which is why at least 85% of traders lose money to the markets.
Who are the Manipulators?
The manipulators are the "Smart Money". They are the trading syndicates, hedge funds and Banks who control over 80% of the money in the markets. They have the power and the clout to move every market. Market Manipulation has been in existence since the markets began and despite all the news and fines and court cases, it will continue - because that is the only way the financial markets can work.
What happens when a Market is Manipulated?
When a market is manipulated the "herd" or mis-informed traders are persuaded to buy or sell. And because everyone else is doing it, so do they. However because the markets are being manipulated, it is almost always the wrong time to be following the herd. The end result: most traders lose money! There is a way to trade through the manipulated markets - follow the smart money legally and effectively! To find out more Click Here to access our Resource Center, which will give you examples of market manipulation and show you how you can identify it on your charts to trade in harmony ethically and safely.