Market Manipulation .... Myth or Facts?

One of the early things I learn when I was still a freshie back 32 maybe 33 years ago was market manipulation. Does it happen? This question is broken into many parts.

To manipulate is equivalent to influence the price or the trend of the object in motion. Well this is where and why I always believe that Physics knowledge comes in handy when we try to understand the market and NOT the financial fundamentals.

To alter the direction or the momentum of an object, in Mechanics understanding, it is EXTERNAL force or input. There is NO WAY the internal force of the object can change the course or speed or more correctly we say VECTOR.

The inputs in the market comes in all different forms. From regulatory laws, media promoting the instruments (stocks, options, futures etc), all external inputs with someone as LEADER. Stock market loves leader doing the shouting promotion and publicity especially if they are BULLISH promotions.

Most people BUY unless there are available OPTION or DERIVATIVES on the stocks. In a mature market, there are Stocks Derivatives (CALL and PUT options) for one to act on. These are not available in most markets.       

Future markets (Commodities and FOREX), we can trade both ways. BUY(LONG) or SHORT(SELL).

From my own observations since the day I was a freshie till I am an old dog, my view is that market manipulation is real BUT it is only not on a PERMANENT basis. Under most cases they are short term manipulation.

To manipulate the whole market is impossible unless both regulations and unlimited funds are available in favor for manipulators.

To manipulate a particular products or instrument is easiest. But a group of products, will need mass participation.

The correct interpretation is that the masses themselves are also members of manipulators BUT not leaders only FOLLOWERS.

Even if the laws are changed market participants will adjust, adapt and act accordingly.

Trading is like drawing a master piece of art. The value of the art will depends on YOU and no one else.

Will your tiger looks like a cat or your cat looks like a tiger, it is the fault of the artist and no other people.