If you put on your thinking cap for a moment and ponder what I said here, you would agree that it make logical sense.
For you and I to make money, whether we are buying or selling, there must be enough demand on the same side as we are to profit from it. That means, if you are buying , say UK index, there must be collectively more people on the same buy side so that we can win over the sell side. That way, the price will be push higher and then you can earn your share of the profits.
So, if you truly understand this principle, you can start to understand why insiders trading are so powerful in companies. They know that certain information once released, will jack up the price and by buying larger volumes of shares in the initial phase, it would help to push up the price so that the retail traders can join in and help push it higher.
However, on the retail scene between individual traders on a daily basis, everyone look out for himself only, sadly. That means, if you spotted an opportunity, you might quietly, secretly go and buy without informing your circle of friends. Psychologically, I can understand this. We are in a way competitive by nature. We do not like to lose out , especially in a world where we compare the Joneses.
You would hope that by buying early and not many people knows about it (actually you have no idea who knows and who not knows , really), you could earn a leap advantage , a first mover stance and at a suitable time, you are able to brag about it. It gives you a sense of security when people flatters, praise you about how good you are at spotting this stock or that index.
Imagine if individual traders can collaborate on a collective basis, how is it possible that the 80% of the masses wealth being controlled by. the mere 20% ? This seeming inequality is played out to its most ugly and atrocious phase when Covid-19 strikes. This 33 days bear market has empower and make the wealthy even wealthier with the mass transfer of wealth from the individuals to the selective "chosen ones" (the rich and wealthy)
Think abundance. It is almost unheard of that if you begin sharing your trade ideas, that particular stock, commodity or index will run out and disallow you to participate. It operates like the ocean, everyone in this world can come with large buckets, pails, container trucks, whatever you can afford to bring and carry with you to the ocean and help yourself to the water.
It is the same in the stock market. The more people that participate in it, the faster the stock price will propel forward. Look at all those crazy growth stocks with little to no fundamentals in it. The sheer volume, speculative or not will drive the stock price up as it has no other way to go.
Imagine how much faster each and everyone of us can reach our financial goals with the indirect help of one another instead of trying to hoard, being selfish, criticising others ideas, jealous and being negative about it.
This is the power of LEVERAGE. This is the power of ABUNDANCE that we can all share freely with one another. There is more than enough to go around.
“I don't want to live in the kind of world where we don't look out for each other. Not just the people that are close to us, but anybody who needs a helping hand. I cant change the way anybody else thinks, or what they choose to do, but I can do my bit.” ― charles de lint
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