MARKET MANIPULATION, PREDATORY PRACTICES AND THE SMALL INVESTOR: UNDERSTANDING AND FINDING A WAY TO PROFIT

Abstract

                 How can one profit from the predatory practices of others? There is nothing new about market manipulation and crises creation. The techniques are variable but the objectives are the same, money and power for the inside operators. Outsiders on the other hand, such as the small investors or traders and the affected companies are the usual victims. Therefore, recognition of the social signs of market manipulation such as inconsistent concept application with strategic selectivity, contradictions, misinformation, as well as discontent which when supported by the financial signs of persistent price inequality, industry wide financial stress evident in overall share price declines will inform the investor to be wary as dividend revenue will not compensate for capital depreciation in a long position; however, the trader, knowing that stressed conditions will continue, at least until there is a rhetoric change, could buy short thereby capitalizing on the price decrease. Evaluating an investment potential should always require an analysis of the social dialogue, its ramifications, in order to develop more accurate future expectations. In this way, a competitive advantage may be achieved by the small investor.