The first five minutes of trading are a lie. That gap up was engineered by three desks in New York shaking the tree to get you to chase. Secret #6: The Short Seller's Graveyard (The Pain Trade) Markets have a cruel sense of humor. The dominant force driving stocks higher is often the suffering of short sellers .
Traders behave recklessly because they assume a safety net exists. This behavior itself drives prices up. It’s a self-fulfilling prophecy. As long as traders believe the Fed will save them, they buy the dip. That buying prevents the crash, which justifies the belief. the undeclared secrets that drive the stock market upd
When a company has excess cash, it can buy its own shares on the open market. This reduces the number of shares outstanding, artificially inflating Earnings Per Share (EPS). It also creates a massive surge in demand. The first five minutes of trading are a lie
The market doesn't go up because companies are doing well. It goes up because you have no choice but to feed it every paycheck. Secret #2: The Short Gamma Squeeze (The Invisible Catapult) Most retail traders have never heard of "Gamma." They should. It is the hidden gunpowder behind every violent upward move. The dominant force driving stocks higher is often
But here is the secret most miss: Companies front-load their buybacks. They announce the buyback to get the stock to rise on news , then they wait for a dip to execute. However, the true upward driver is the .
Market makers—the giant banks that facilitate trades—sell options to retail traders. To stay neutral (delta neutral hedging), they have to buy or sell the underlying stock. When you buy a call option, the market maker sells it to you and then buys shares to hedge.
Executives cannot buy or sell their own stock during blackout periods (before earnings). But the company can. And they do. The single largest period of share buybacks occurs in the two weeks before earnings season begins. Why? Because they want to drive the price up before the news hits, so the options they issued to executives print.
The first five minutes of trading are a lie. That gap up was engineered by three desks in New York shaking the tree to get you to chase. Secret #6: The Short Seller's Graveyard (The Pain Trade) Markets have a cruel sense of humor. The dominant force driving stocks higher is often the suffering of short sellers .
Traders behave recklessly because they assume a safety net exists. This behavior itself drives prices up. It’s a self-fulfilling prophecy. As long as traders believe the Fed will save them, they buy the dip. That buying prevents the crash, which justifies the belief.
When a company has excess cash, it can buy its own shares on the open market. This reduces the number of shares outstanding, artificially inflating Earnings Per Share (EPS). It also creates a massive surge in demand.
The market doesn't go up because companies are doing well. It goes up because you have no choice but to feed it every paycheck. Secret #2: The Short Gamma Squeeze (The Invisible Catapult) Most retail traders have never heard of "Gamma." They should. It is the hidden gunpowder behind every violent upward move.
But here is the secret most miss: Companies front-load their buybacks. They announce the buyback to get the stock to rise on news , then they wait for a dip to execute. However, the true upward driver is the .
Market makers—the giant banks that facilitate trades—sell options to retail traders. To stay neutral (delta neutral hedging), they have to buy or sell the underlying stock. When you buy a call option, the market maker sells it to you and then buys shares to hedge.
Executives cannot buy or sell their own stock during blackout periods (before earnings). But the company can. And they do. The single largest period of share buybacks occurs in the two weeks before earnings season begins. Why? Because they want to drive the price up before the news hits, so the options they issued to executives print.