Markets

By | June 30, 2022

Source: Pixabay

Markets are places where one can sell or buy products with at least one more participant in exchange for a defined currency (money). A basic condition for capitalism.

Something you have to get into your mind is: Markets are not there for you!

???

Who is it for?

Just ask yourself, who created the market for what reason.

Who will charge every participant for every transaction made?

This means:

On every market you try to sell or buy something, you need to know that there is an interest to make you trade more than necessary to charge you more fees than necessary. Additionally, there is an interest by any other participant to make a “good” deal.

What is a good deal:

  • getting a good price for a sale of a single product
  • selling mass product supply for a preferred price
  • selling worthless frippery to others, tricking, cheating
  • selling things that you don’t have, buying back in the future for a lower price (going short)
  • buying a product now and selling in the future for a higher price (trading)
  • buying a product now and selling in the far future for a far higher price (investing)
  • buying on one market and sell on the other market for a higher price
  • taking advantage of market participants by having nothing to offer and won’t buy anything in the end, fooling everyone around, aiming to make money out of the market by fees, manipulation, corruption, destruction. (a common strategy by Wall Street, I am still investigating)

Of course, some markets are not in hands of others, …but many are. If you know that there is a “market maker”, respect that. Mostly, a market fee exists when it is regulated, means the rules of the market are fixed and market participants are screened, therefore trusted more.

Types of markets to think of trading publicly with a quite easy possibility of participation:

-> If the government becomes a market owner, it’s over! There is no rational market any more. See e.g. Country of Turkey these days.

Additional thought 06. July 2022:

When we see this list of markets trading products and services, it must be essential that an investment should only be taken for a real product or service that brings value to others. If worthless “assets” are bought (assets might be the wrong name), what can you expect? In the end it will be worthless, no matter how much someone paid for it in the past or how much of it exists. So one big step for taking an investment is to be either clever to re-sell fast to a dumber participant or to wait for the value to grow, because it has had a defined use. (A house will still be a house in 10 years, digital coin might be gone completely tomorrow). That re-selling fast-culture is a dangerous tool. It can even result in a financial crisis driven by ponzi-schemes / pyramid-schemes. It is where money does come from, but it makes money itself de-value a lot. More money will be needed in the market for worthless products and in a sudden action the market majority will realize it and run for the money, not the product. The market will crash, re-valuing money to reality.

4 thoughts on “Markets

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