Stocks x Forex – Part 1

I grew up in a privileged environment, and I thank my parents for that. From infancy till my mid-teens I used to play tennis competitively, but once in a while I’d play golf, just for fun.

The theory at the time (a long time ago, I must say) was that tennis would badly interfere with golf. The strong right hand at tennis would ruin the follow through at golf. I always thought it was just BS, but you know… those were the times adults were always right!

Anyway, at seventeen, after severely breaking my femur in an accident, my only choice – at least for a while – was golf. And I definitely fell in love with it!

That was the time, also, that I started noticing the peculiar differences between both environments.

At tennis, social gatherings were typically a pretty sad and pathetic experience: they’d all take place at the locker room. Aside from all the ugly naked guys, sweaty and tired on their way to the showers, the conversation was inevitably about – I know you guessed – tennis!

Now… there are some fairly boring conversation pieces in life, I concede. Tennis, though, goes some steps beyond that!

Golf, on the other hand, has two traditionally well established venues for game chatting, which is never a boring experience: the nineteenth hole, around an always present shandy, and the locker room.

 
Golf Locker Room
 

Why? I don’t have the answer for that, but I assume it’s because golf is a social game, something like the Facebook of sports! Tennis is a fighting game: it just exchanges gloves for rackets! These opposite DNAs contribute to make the difference, I suspect… 😉

Anyway, for most golfers – usually the crappy ones – those two meeting points are THE social event of the week… the quintessential buddies’ bond occasion! The not-so-crappy golfers would include the golf course itself as the third venue!

Very well, let’s go now to the point.

At the golfers’ locker room – sometimes even at the shandy’s table – there was ALWAYS the inevitable chat: the Stock Market, and the “Hottest Stocks Of The Week”!

I told you it was a privileged environment, didn’t I? Well… sometimes I think to myself… that place was way beyond privileged!

I wasn’t raised in the US. And now that I’m thinking about it, I won’t probably tell you where these events took place. Or – for all the lost fun – I’d have to forfeit the privilege of telling you some pretty good real stories, for fear of exposing a few pretty good real names as well… and I won’t do that! 😉

One thing I can tell you, though… If it was in America, all those nice fellow golfers (some of them pretty crappy ones, I must say) would be, “almost” certainly, in jail for insider trading!

I’m emphasizing the “almost” for all I saw happening – or NOT happening, for that matter – to some pretty guilty Wall Street big shots after September 15, 2008 – the infamous Lehman Brothers enchilada and the subsequent derivatives debacle. One day we may even write a blog entitled “Impunity Rocks”… probably and most appropriately adding “Worldwide”! 😉

Anyway, let’s move on.

The Golf Club locker room was THE Situation Room for the Country’s Economy! And I really mean it! Central Bank? Naaahh, not even close! Those guys WERE the Central Bank!

Things are different now, of course. But I’m talking about the ’70s, the Far, Far West period of the financial world! Forex Trading was non-existent outside the big banks (some of those crappy golfers were big bankers), so Stocks were, alone, THE trend of the ’70s!

Every single week, for years, I witnessed the “Slaughtering of The Suckers”, being orchestrated by a few pretty ugly, naked and fat – but powerful – stock brokers, bankers and financial geniuses. The “malpractice conspiracy theory” at the best of its reality! 😉

Can I prove it? Maybe. If we run the financial sessions of the 70’s papers, we’ll probably be able to gather some hints of what I’m talking about.

 

A Small Taste Of The ’70s Locker Room Life

In a confidential tone of voice of something being passed on to you as a precious, well guarded secret, they’d tip you on some “ABC” stocks:

“Buy them, buy as many shares as you can. Price is a bit high, but don’t worry, they’ll start to skyrocket 2 hours after opening tomorrow!” – they’d tell you, the newly arrived “insider’s recipient”. You should have start shivering at the “don’t worry” part of their “tip”!

The “Suckers Team” would buy ABC first thing in the morning. From whom? You guessed… Exactly! From the ugly naked brokers… in short, the marketmakers, a modern version of the 20’s bookmakers!

For a couple of days they’d be at the top of the world: even suckers were humans!

“Man, oh man! Those fatty naked guys and their small dangling things… h’bout that! They made me a fortune by Wednesday!”

The owners of the dandling things, though, knew precisely with whom they were dealing: the honorable “Suckers Team”!

By Friday, the ABC was almost history – flirting with ground zero! On the weekend, all the actors were back at the locker room:

“Did you do what I told you to do?”

And the suckers would grumble:

“Yes, we did. But we LOST big time!”

“Why on Earth didn’t you SELL on Wednesday?!?”

They – the dangling guys – DID sell on Wednesday… and they were the front row BUYERS of ABC on Friday… for peanuts on a dollar!

On Friday, whatever ABCs the suckers sold, the dangling team bought. What a coincidence!

The thing is: sharks knew how to manipulate suckers for their sheer GREED!

And, at the end, they’d come up as heroes, since the tip was CORRECT: ABC grew strongly for a couple of days, all right, precisely the time those sharks had to SELL all their ABC inventory!

They’d just conveniently “forgotten” to tell the suckers one little, TINY detail: “SELL on Wednesday!”

And we all know by now, about this crooked financial madhouse: “Timing is EVERYTHING!”

What happens to the usual “Suckers Team of the Week”? Two things would inevitably happen:

  1. They’d never, ever talk about this kind of incidents. “NEVER happened, period.” – Pride is a real killer!
  2. They’d fall for the “tips” again with XWZ stocks, a couple of weeks later… and again with MNO… and again with QWE…

Did I ever engage in the game in those times?

Did I ever fall for the “tips”? In those days I was pretty much a young “mascot” for those ugly sharks. I’m sure they’d have been very proud of saying that their “protegée” was doing fairly well, and they weren’t totally BAD guys, as people used to portrait them! But no, I never followed any “tip” – or “counter-tip”, for that matter. I just learned a lot!

I’m not saying I don’t like stocks, or I don’t trust the game, or I just reject it for any particular reason.

Oh, no. I’ve played, made some money – always at a safe distance from predators – and actually enjoyed the game… yes, I did!

Sometimes, though, History tends to repeat itself… we all know that. Let’s get to know why in the next post.

Thanks for watching…

 

… will continue tomorrow, at “Stocks x Forex – Part 2”.

 

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