There’ll come a time when the SEC will do away with absurdities like the pattern day trader rule in favor of holding accountable entertainment-masquerading-as-reality outfits (WWE, CNBC, WSJ etc.) and their pseudo-champions (The Rock, Cramer, Journalists, etc.) for the damage their charade causes…but it is not this day.
For now, you must learn to profit from the circus that is the financial media
industry…case in point, the CNBC-caused morning spike in (AGEN). After a brief TV mention and naively optimistic online article, thousands of CNBC-faithful bought in, thinking the cancer news (on which the stock was only up 20% on the day beforehand, aka not big news) was big-time.
An hour later with the stock lower by 20%, many threw up their hands in disgust claiming “I’m done, I’ll never understand the stock market!” There there little suckers, it’s not the stock market that can hurt you, it’s the manipulative forces that are at work behind the curtain. Direct your anger at them….or learn to play the game.
Fess Up Time: I successfully borrowed 1,000 shares to short AGEN into the hysteria, but by the time I got them, the stock had already fallen—damn useful posts like this for cutting through the industry BS and decreasing the # of suckers!