Skip to Content
10-28-2010 @ 9:21PM
"While I'm not a stock broker or economist, if a stock was going to likely increase significantly, but there was a constant whistle blower with a huge audience on such things, you've ruined the chances of people who might have been counting on that stock spike. You'd also have a lot of angry investors out there..."Let me capitalize the relevant portion of that statement:"BUT THERE WAS A CONSTANT WHISTLE BLOWER WITH A HUGE AUDIENCE ON SUCH THINGS,"Now, let me respond:http://www.cnbc.com/id/15838459There is no one louder, no one with a bigger audience than that guy. He's been proven to be just about as wrong as he is right, and his words can move markets. Here's the crazy thing though: Since he has so much influence, he can actually help manipulate markets. Now, he restricts himself (as many ethical analysts do) by blacking out stocks he talks about (in other words, he won't buy or sell within 10 days any stock he talks about). He also talks about big market trends.The net effect he has on the market? Absolutely zero. Now why is this? Let's answer that question by addressing something else you stated:"You'd also have a lot of angry investors out there..."What you fail to realize is that for every loser, there is a winner (talking about on a 1 to 1 trade). The winners in financial markets come in two ways: 1. Long-term investing in equities and financial instruments that appreciate faster than inflation, and 2. High volume-trading where you "win" more than you "lose."Now, there are other ways to become wealthy, for example building equity in your own business, home, education, career. But we're talking about financial transactions, which is what mirrors the AH activity. One can combine the two (as many of us do, for example by trading honor won in WG for gems and selling them on financial markets), but over time, you need to beat the natural economic inflation to be a "winner."As far as angry investors, like I said, for every loser, there is a winner. When basil posts this stuff, and the AH pvp'ers have their margins cut, that means someone on the other side is getting a better deal; this would be the AH non-pvp'ers. That being said, any really good trader knows how to make money in any economy (up or down). The difference is the rate at which you make money (the velocity of your gains will decrease with more competition).This final point is also a very good one:"Gypsy I hear where you are coming form but about one third of the content of WoW Insider is the experts telling the rest of us how do do X, Y, and Z in WoW."Wow is the biggest MMO in the history of gaming. To expect your "gold making secrets" to remain a privileged secret with you and your close circle of friends is unreasonable. I'm sure you can go dominate the AH oh Aion or any number of lesser MMO's where there is less information and probably less people talking about the game on the internet all the time.
First time? A confirmation email will be sent to you after submitting.
Members enter your username and password.
Enter your AOL or AIM screenname and password.
Please keep your comments relevant to this blog entry. Email addresses are never displayed, but they are required to confirm your comments.
When you enter your name and email address, you'll be sent a link to confirm your comment, and a password. To leave another comment, just use that password.
To create a live link, simply type the URL (including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted — no need to use <p> or <br /> tags.