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There is a dark dark dirty world of wall street that very few people in the world even know exists i’m gonna go ahead and open your guys’s eyes today it enlighten you on some of the practices some hedge fund managers do and many on wall street do that actually can control the entire stock market and particular stocks to move up or move down i cannot wait to share this
With you guys today good day subscribers thank you so much for joining me today i am jeremy this is a financial education channel where we talk about personal finance where we talk about entrepreneurship and where we talk about stock market related stories like i’m going to talk about today so today we’re talking about the dark dirty secret world of wall street and
We’re talking about some of the things that go on that never get talked about but it is for you guys to be aware that these things go on in the markets these things do happen a lot of times they’re almost never proven they’re almost never caught a lot of these things so these things aren’t even illegal that i’m going to talk about today but they happen and they’re
Impossible to charge but and it’s not a thing to scare you away from the stock market this video is not about scary ins i know my gosh i’m never gonna invest this is too scary it’s just to open your eyes and be aware of these sorts of things because if you’re aware of these kinds of things you’re probably gonna prevent yourself from getting trapped into some things
That you may get trapped into all right so let’s go ahead and get straight into this number one thing i want to talk about today is stocks and how they can be manipulated now jim cramer did a great video one time and i don’t think this video was supposed to get out i think it was supposed to be kind of like a private video and somehow it got online and he was a
Hedge fund manager right and he was talking in this video about how they could control the stock market and he could control it with only about 15 20 million dollars so what he would do and when he says a lot of people would do he kind of went into depth about you could front run the market so before the market opens and the pre markets and whatnot if you want to
Run the market up a bit you can buy buy buy buy buy shares in companies and kind of run it up and then things lee’s come keep flowing and keep in others will start buying because they see the markets going up and also with the computer algorithms nowadays it’s gonna exacerbate whatever kind of move with the computer our algorithms nowadays if the stock market’s
Moving up it’ll the computers will also buy buy buy and they’ll move it up a little bit more and a little bit more and every bit of buying creates a little bit more buying the same thing if the markets going down a little more selling a little more selling out spying is such huge moves nowadays so he was talking about how you know a hedge fund or whatnot if they
Were long stock so they believe stocks were gonna go up or they needed stocks to go up there were long stocks they could buy buy buy in the morning and then that would create a cushion and then the market could kind of go up and a low-volume days where low volume meaning not a lot shares are traded that could really benefit the long side because you don’t need
As much money if not as many shares are being traded so holiday periods is a great time to do this also if you’re short at the market you can sell sell sell you can sell shares you can dump shares on the market and they don’t create kind of a bad stigma and it lists there’s a ton of buy side coming in the markets gonna open down that day and the stock market is
Gonna go down that day another way to do it is say you want to really kill momentum in the stock market here’s the way you could play it you and your buddies can kind of get together your other hedge fund buddies and of course these things are so hard to prove because you know you can talk on the phone say hey you know what let’s get this market to go down today
And they could you know it’s so hard to prove and who wants to turn in this person turn on that person because everybody’s dirty am i on right so you can all kind of go the same route in a way you can kill the market is you start the market where it’s off so you buy buy buy in the pre-market right but all along most of your shares are short because you want the
Market to go down so you buy buy buy it so it looks like the markets going up and the lungs are feeling yeah the stock market’s going up and then you tell them you dumped the shares all you at once you dump the shares all within a half-hour hour period and that selling creates so much selling pressure that there’s not enough buyers so the prices go substantially
Lower and immediately the market loses all confidence so the market just drops dramatically and i talked about those computer algorithms and they can exacerbate the moves so the sell and sell selling and that’s how you can really tell a market because it looked like oh this is great the markets going up the lungs are happy and then you to seal your gains get wiped
Out and the market ends up going down that day that is painful that is painful that is hard for a lot of people to take and you can do it the other way if all you and all your buddies and the pre markets and whatnot if say your long stocks you say ok let’s create an illusion that the markets going down then we’ll buy a ton of shares and the market will go up and
It will create a stigma that the markets definitely in an uptrend because even when it looks and like it’s gonna go down it still ends up higher so the market opens down looks all bad the short seller is like yeah yeah and then buyers come in this hedge fund this hedge fund everybody’s buying next thing you know the markets up to 300 points and the shorts are like
Are you kidding me you can really manipulate a market now of course with all these things you need i would say it’d be hard for just one hedge fund to control it it has to be multiple but they’re all talking to each other and how are you gonna prove this stuff if you the sec how are you gonna come down on them it’s very very hard is it illegal to do that maybe
Maybe not and like i said how you gonna prove it you know it’s a private meeting this person has it with this person you know phone calls it’s hard to track unless you already have dirt on that person and then you’re allowed to tap their phone lines and all those kinds of things it’s a way you can manipulate the market another way analyst okay a lot of analysts
Work for investment things or banking sectors of some kind or support it indirectly by investment banks right analysts are supposed to be independent most of the time but give me a break these analysts are getting the checks cut by the investment banks so do you think that investment things are really gonna go against what their short shareholders and what their
Investments are in i highly doubt it so if let’s say there’s a corporation a vc corporation let’s say an investment bank is short their shares so they’re betting that the shares are gonna go down do you think their analysts they’re independent an analyst is gonna go long that stock and come out so that a bunch of positive things all the stock is so great it’s going
Way up i highly doubt it that analyst is probably gonna have the same opinion that investment bank has magically and they’re probably gonna say you know that stocks crap it’s going way down it’s going down 20 percent next month the earnings are gonna be back whatever they’re gonna put out a lot of bad news most of the time same thing if us if there are companies
Are excuse me an investment bank is long a stock so they believe in it they own that stock you think it analyst is gonna come out and say that works for them say hey you know what that sucks bad that stocks going down i highly doubt it and of course they’re supposed to be independent but guys i mean what would you do what are you what do you think i mean okay i
Pay you to build a brick wall for me you work for me you work for me i’m the one cutting your check you paid you know i pay you to build a brick wall when the brick wall is finished are you going to go up to the customer and say hey you know this is such a crappy job on this brick wall you know we did you know he you know spackle to put on the bricks and whatnot
This is crappy job heck no you’re gonna say you know we did a great job this is the best brick wall you have and this is awesome because i’m cutting your check at the end of the day and if you’re liable to say something bad and that gets back to me i might even want to fire you so do you think as an analyst in an investment banking world some of those kinds of
Things go on i think you would be naive to say no no that doesn’t happen come on you know that’s just another way of manipulating stocks and a lot of times analysts will reiterate to see a stock starting to get momentum it’s going up going up analysts can come out and reiterate their rating so say the stock’s up to $10 a share an analyst has a $6 price target on
That stock and the shares are climbing the analyst can come back out and reiterate they won’t even change her price target doesn’t say the same exact thing they already said probably a month or two ago and because analysts have a lot of power generally especially in smaller stocks that that stock will move down dramatically based upon what the analyst said even
Though it’s the same thing they said months ago analysts have a ton of power a ton of power especially with stocks that are have under a 10 billion dollar market cap those ones they can really move them up or down based upon what they say so another way to say an investment bank or hedge fund or whatever say they are starting to go long a stock so they say they
Were short this stock this particular stock now they’re starting to go long well if they’re starting to go long they want to at the cheapest price as possible right so put their buying in shares and they’re buying a lot so that might be raising the price they could have the analysts come out somehow and say hey you know that’s a bad stock still and say you know
Oh that stocks gonna be going down and for this reason for this reason for this reason sends our stock down meanwhile the investment banks going long once the investment bank has their position in then they say ok you know one analyst now you can go ahead upgrade it then the analyst can come out and say hey what things have really changed with that company they
Upgrade they say all the price targets now $14 when stocks hit ten dollars or eight dollars or whatever and so and analysts a lot of times are chasing numbers and this isn’t such so much even i’m gonna kind of get away from the stock manipulation thing and then kind of do all this dirty stuff but i just want to talk something about analysts for a second a lot
Of times they’re wrong right on price targets so it doesn’t reach their price target and it goes to the other way and what can happen is analyst moves can go exacerbate a move one way or another i’ll give you a perfect example of a stock that he tracked them gopro gopro came out with an ipo of $24 a share $24 a share it went up to 40 almost immediately and then
Analysts couldn’t keep their praise targets going up so they kept having a raise kept having to raise kept having to raise nixing you know gopros stock price was in the 90s and analysts we’re still trying to keep up at that and they kept raising their price target which even push the stock price higher and higher and higher nixing you know that stock crumbled crumble
Crumble and you had the exact same thing happened but on the downside where the analysts kept having a cut price target kept having a cut price target and that exacerbated the move on the downside and the stock just kept moving down further and further because everybody was trying to get those lowest number possible because they look stupid if they had a $60 price
Target and the stock was at 30 so they kept having moved down so that’s something that cracks me up with analysts is how they pretty much have to move after the moves already happened and it can really exacerbate a stock especially if a stock that’s going up a ton or down a time so that’s just something to keep in mind so i gave you a few examples of the dark dirty
World of stock manipulation and kind of some things that go on those are some things i know of how the market can be controlled on how individual stocks can be controlled and i think it’s for you guys to be aware of these sorts of things you know there’s just a lot of things that can be done when you have money and you have a lot of money invested because you can
Talk to people you can pay people to say something bad about stock whether it’s an analyst whether it’s a product reviewer whether it’s a tech magazine if it’s a tech company see something good say something bad and like i said this stuff’s really hard to prove it’s really hard to find out it’s just difficult so most of it gets swept on the table in whoever’s the
One with the big money they make out like bandits almost every single time because these things do affect where the stock prices go so anyways once again this video was not to scare you guys away from the stock market this video was not to frighten you this video was to enlighten you to open your eyes and really see kind of some of the things because these things
You’ll kind of begin to notice them over time if you haven’t already noticed them and then at least you’re prepared for it you’re like hey you know what i know about this game and i could play it too and i know what game they’re playing and i’ve know i know what game they’re playing then i know how to beat them at it because i know their strategy and if you know
Their strategy it’s no different than football game if you know the other teams plays you’re gonna beat them every time so it’s very important that you know that having teams plays anyways thank you so much for watching this today guys subscribe if you haven’t thumb this video up if you agree with some of the things or you know i enlightened you i opened your eyes
Leave me some comments if you want to comment about anything scary stuff but not too scared anyways thank you so much guys for joining me and have a great day
Transcribed from video
Secrets of Wall Street | Stock Manipulation! | Stock Market Manipulation! By Financial Education