The Stock Market is essentially a casino. Public companies are the house while investors are the players. Instead of exchanging chips for money, it is stocks for money. The wagering and the thinking process is all the same.
Broker advertisements to “buy now” are not much different from casino advertisements of strategies or promotions for winning. The first item any investor or player has to understand is everything is rigged in favor of the house. If an investor realizes that, then to have the best chance of making money, he or she must play on the side of the house.
If the Stock Market is viewed through the lens of liquidity theory, then an investor must focus on supply and demand. Price in the market is a function of liquidity which is how fast investments convert to cash. It is the public company investor and insiders that know the market the best, because they have to or they will not be successful. When public companies make similar decisions on stock, it tells you about the economic growth or lack of growth most likely to happen. This indicates what one should do with their stock. Public companies control the amount of shares.They can create an infinite number of shares when the market is high and buy back shares when the number is low. It is a dance. The public company buys low and sells high while the investor buys high and sells low. An investor, to make money like the company, must break the pattern and do what the company does. That is when an investor becomes part of the house.
