For most stocks, commodities and other investments, the market is just too big to be manipulated. What looks like a lot of money to you and me — and is a lot of money for an individual — is just noise to the overall market.
That's not to say that they don't ever try. Most notoriously, the Hunt Brothers pushed silver up to about $54 in 1980. They declared bankruptcy and were convicted of conspiring to manipulate the market. By the way, when they started acquiring silver in 1973, they were among the very wealthiest people in the US and world.
Now, when it comes to illiquid penny stocks, you may know that the story is quite different. Then you do have cases of "pump and dump."
That's where somebody buys a small, over the counter stock, then somehow pumps it up. Most commonly used are Internet investment chat rooms and forums, but financial newsletters have been accused of this too. If you can get a few hundred or thousand people to buy the penny stock, the price will go up. Then you dump it.
Or you can do the opposite. Short a stock, then bad mouth it until the price goes down where you want. I forget the catchy phrase for that.
But notice that these scammers are not using their money to artificially raise or lower price of stock, just word of mouth.
I don't believe that using your own money to push up price of a stock or option — by buying more and more — makes mathematical sense. When you run out of money, demand will return to normal, and so will the stock price, leaving you holding a lot of overpriced shares and options.
Remember that in the money options go up (or down) in price dollar for dollar compared to price rise (or fall) of underlying stock.
best, Rick
You have as good a chance with commodities futures.
Many thanks in anticipation.
) Has anyone found a program (preferably online) that they would recommend for either commodities or day trading?
send an email if you like and I will give you names of a couple of these that are worth investigation. I don't sell any of them and have no affiliation with the companies. Good Luck, Good Fortune, and Keep those very wary eyes WIDE OPEN!!
http://www.deutsche-bank.de/presse/en/content/press_releases_2006_3098.htm?month=6&dbiquery=4%3Aetf
Does anyone have any suggestions on which market would be have the least complex learning curve?
trading electronically in real time as a day trader
Stocks mainly
Find the articles online that have evaluated and compared online brokerages. I found a good one online in Barron's, but you'll find others in the trading magazines.
This is worth putting a little time and effort into, because it's a pain to switch, so once you choose, you're kinda stuck with it.
Townsend Electronics, the Parent company of TerraNova, is the one that digitized and electronified the Nasdaq. They are technological industry leaders and have a powerful and well built trading system.
I use RealTick at TerraNovaOnline, but it costs $275/mo. I think the Investor package is free to use, and just uses one screen.
What you should try is a free trial of their Investor demo. Their rates are good also, but of course, it depends on how often you trade. It will take you months to learn all the bells and whistles of what this program can do.
The other top-of-the line program is TradeStation, but it costs big bucks to join and operate. Some people consider it the Cadillac of trading and technical analysis.
TerraNova is the home of the Day Trader, so they think nothing of you making several hundred trades a day. You don't have to do that, but it's okay here if you do.