Lasertrader's Place

A Potpourri Of Trade Ideas and Setups

Question for the Stocktwits Stream

Posted by lasertrader on March 6, 2011

No setups today..no sector play..just a question.

Although I strive to be mechanical and simple in my trading style and avoid as much “noise” as possible I admit that at times I am a Stocktwits junkie. My recommendation is the same as all the other seasoned professionals on Stocktwits….use it for idea generation…develop your own repeatable methodology…plan your trade and trade your plan.

With that being said, Stocktwits has done what no other medium has done for traders. It has assembled the best of the best in this business and provided them with a forum to exchange ideas, challenge each other and even pat themselves on the back for  the unbelievable amount of profitable advice they share with all of the “listeners” from newbie traders to the old timers. The stream includes current and ex fund managers that manage sums of money many of us only dream about, there are well known analysts, extremely knowledgable economists, ex Mutual fund managers, current and ex brokers..this incredible list of disciplines goes on and on. It doesn’t get any better than this. One would think that with all this knowledge, experience and firepower any market and trading question can be answered by the community.

This brings me to my question…with all this knowledge in one place, why is there still reference to “the smart money”, “they”, “the big money”. There seems to always be some big unknown, unidentifiable entity that controls our destiny, the market direction, and our trades.

If “the smart money”, “they”, “the big money” aren’t part of this vast and knowledgable Stocktwits community, who are they and where can they be found? I wan’t to know so when the market turns against what the stream is suggesting and it was the “smart money” that made it happen I would like to know in advance.

The answer to this continues to elude me.

.

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4 Responses to “Question for the Stocktwits Stream”

  1. barberosa said

    I remember the evening my father came home from work after the crash in the late 80’s. He told me that stocks had fallen a large amount very quickly, and reduced our savings. I asked him, how do stocks get devalued over such a short period? (I had the impression as a young child that stocks prices were direct reflections of their sales)

    He explained that it was peoples perception that made stocks valued at their current price. To this I asked, “then what’s to stop the stock market from printing fake numbers?” He thought for a moment and replied, “Nothing”.

    Who are the “big boys”? George Carlin would refer to them as the owners of this country… and your not one of em. My guess is they are too busy jetsetting around to appear on the stream. People who knew to get rid of large chunks of BP before the disaster, and pay disinformants to exaggerate the scope of the disaster, driving down stock prices, which are then bought back, and mysteriously the disinformant is killed in his pool. People who bought puts on American Airlines and United prior to 911. CEOs who just didn’t show up for work that day.

    In this line of work, their must be a certain amount of belief in a reality we all know to be false- but it can be profitable. We are merely trying to profit from the elite screwing the majority – scooping up crumbs so that we can have a taste of what it is we perceive they have. But this is not the case. Money, as they see it, is merely a tool to compromise the freedom of the masses in a legal format. We want to use money for our freedom, they want to use theirs to restrict ours.

    This stream is composed of varying levels of wealth managers, but make no mistake, there is definitely something that outweighs us by 10-1. We are definitely subject to the influence of something that resides in the shadows. When the light shines on this entity, the term black swan will be redefined.

  2. barberosa said

    Thanks. I’m a little bummed that nobody else had anything to say. Oh well.

  3. Chartwise said

    Laser, I remember Pradeep talking about market structure. You just mentioned all the different disciplines that make up the structure of the market. Not only that, each of the folks on Stoctwits use different methodologies.

    Another part of the structure includes, very well informed, fund managers who get the inside track through connections or because they generate big commissions for brokers. They have a bit of an informational edge because they have big bucks to throw around. They are part of the smart money group. Not to mention guys like Soros, Tudor Jones who can make markets move by coughing up ideas they already own.

    Then there are the specialists who know support and resistance better than most of us because they know where all the stop and limit orders are. They fake out and shake out traders constantly.

    I’ve been kicking around in my mind how to best take advantage of the structure as I see it although my view is way shallow compared to more experienced traders like you and Pradeep.

    Appreciate your thoughts and for throwing the question out there. I would like to delve more deeply int the market and it’s structure.

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