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Interesting. A little googling turns up that 25 years later, he's still in the pump-and-dump business! Do what you love, I guess.
Earlier quoted context omitted.
> The entire trading industry is a zero-sum game bro. It's not, and even a cursory understanding of what zero-sum games are and how the stock market works would tell you that. How does the market grow if all trades are zero-sum? How do recessions happen if all trades are zero-sum? Some portion of trades are zero-sum, maybe even most of them. Stock markets don't function if every trade was zero-sum. Pump and dump sche…
The trading industry is separate from the investing industry. The investing industry is positive sum - but you must hold for the long-run, or only make decisions if new information is discovered to be an investor. Vanguard and other passive firms are a part of the investing industry. As the GP says, the trading industry is zero-sum.
Interesting. A little googling turns up that 25 years later, he's still in the pump-and-dump business! Do what you love, I guess.
I found this Twitter account last posted to in 2014. https://twitter.com/lebedbiz I checked a good few of the stocks he listed. I figured he would have struck a lucky score at one point but he seemed to have an uncanny ability to always pick losing stocks. I was hoping for a happy ending like how many of the people I played Runescape with who hosted dicing games, speculated and flipped in-game assets became successfu…
> Lebed professes that he did nothing wrong – he did nothing different from Wall Street analysts. He states that he learned how people react to the stock market and acted on that knowledge. So you trick people by lying to them, and it's ok because you take their money indirectly via the stock market. And because some analysts also do this (often suffering legal consequences), then it's definitely not wrong? Shameful.…
Earlier quoted context omitted.
> The entire trading industry is a zero-sum game bro. It's not, and even a cursory understanding of what zero-sum games are and how the stock market works would tell you that. How does the market grow if all trades are zero-sum? How do recessions happen if all trades are zero-sum? Some portion of trades are zero-sum, maybe even most of them. Stock markets don't function if every trade was zero-sum. Pump and dump sche…
> How does the market grow if all trades are zero-sum? The same way a cancer does: by repurposing adjacent systems in service of propagating itself, often to the determent of the function of those systems. In the case of a financial market this means people spending their time watching lines squiggle around on a screen instead of finding real problems to solve. Referring to the increase of stock prices as an indicato…
What you can do is identify when cells aren't behaving in good faith and punish them appropriately (through chemo etc) and find ways to prevent that behavior from surfacing again (diet / avoiding carcinogens / unknown future solutions).
> Lebed professes that he did nothing wrong – he did nothing different from Wall Street analysts. He states that he learned how people react to the stock market and acted on that knowledge. So you trick people by lying to them, and it's ok because you take their money indirectly via the stock market. And because some analysts also do this (often suffering legal consequences), then it's definitely not wrong? Shameful.…
Both of these statements can be true at the same time.
In seriousness though: are analysts allowed to have an interest in stocks they're publishing analysis for? It seems like a fine line between creating an obvious conflict of interest (see: TFA perhaps on a more subtle level) and wanting them to have skin in the game so they're incentivized to provide useful analysis (rather than YOLO: stock goes up/down and I don't care because it's other people's money on the line).
In general, it seems like a hard problem to compensate an analyst without either creating one of the above scenarios or generally setting up a scenario where they'd be better off trading for themselves on the basis of their analysis rather than providing a service to other investors.
Earlier quoted context omitted.
My last crack should probably have had a /s. I don't actually believe that.
I didn't take you as believing it, just as framing what others might think. I've seen the sentiment too and it frustrates me.
Earlier quoted context omitted.
> How does the market grow if all trades are zero-sum? The same way a cancer does: by repurposing adjacent systems in service of propagating itself, often to the determent of the function of those systems. In the case of a financial market this means people spending their time watching lines squiggle around on a screen instead of finding real problems to solve. Referring to the increase of stock prices as an indicato…
Cancer is an exploitation of the politics present in human cellular biology. The DNA of what makes us human mammals is molecular capitalism in this analogy. You can dismantle that, but then we would be floating amoebas in the primordial ooze. What you can do is identify when cells aren't behaving in good faith and punish them appropriately (through chemo etc) and find ways to prevent that behavior from surfacing agai…
That is, I don't think that "the markets are up" is not an adequate indicator of "behaving in good faith". You have to look more closely at the actual outcomes. Whatever is being invested in, does it make life better or worse for the rest of us, etc.