How the Stock Market Works - Off-Topic | futures trading

Go Back

> Futures Trading, News, Charts and Platforms > Off-Topic

How the Stock Market Works
Started:November 15th, 2010 (06:20 AM) by Mickey Caine Views / Replies:991 / 1
Last Reply:November 15th, 2010 (06:20 AM) Attachments:0

Welcome to

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

How the Stock Market Works

Old November 15th, 2010, 06:20 AM   #1 (permalink)
Elite Member
Kent, England
Futures Experience: Intermediate
Platform: Sierra
Broker/Data: Infinity
Favorite Futures: Oil
Mickey Caine's Avatar
Posts: 196 since Jul 2009
Thanks: 1,607 given, 347 received

How the Stock Market Works

Once upon a time in a place overrun with monkeys, a man appeared and announced to the villagers that he would buy monkeys for 10 each. The villagers, seeing that there were many monkeys around, went out to the forest, and started catching them.

The man bought thousands at 10 and as supply started to diminish, they became harder to catch, so the villagers stopped their effort. The man then announced that he would now pay 20 for each one.

This renewed the efforts of the villagers and they started catching monkeys again. But soon the supply diminished even further and they were ever harder to catch, so people started going back to their farms and forgot about monkey catching.

The man increased his price to 25 each and the supply of monkeys became so sparse that it was an effort to even see a monkey, much less catch one.

The man now announced that he would buy monkeys for 50! However, since he had to go to the city on some business, his assistant would now buy on his behalf.

While the man was away, the assistant told the villagers, 'Look at all these monkeys in the big cage that the man has bought. I will sell them to you at 35 each and when the man returns from the city, you can sell them to him for 50 each.'

The villagers rounded up all their savings and bought all the monkeys. They never saw the man nor his assistant again and once again there were monkeys everywhere.

Now you know how the stock market works.

Reply With Quote
The following 3 users say Thank You to Mickey Caine for this post:

Old November 15th, 2010, 06:20 AM   #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.


Reply > Futures Trading, News, Charts and Platforms > Off-Topic > How the Stock Market Works

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

An Afternoon with FIO trader bobwest

Elite only

NinjaTrader 8: Programming Profitable Trading Edges w/Scott Hodson

Elite only

Anthony Drager: Executing on Intermarket Correlations & Order Flow, Part 2

Elite only

Adam Grimes: Five critically important keys to professional trading

Elite only

Machine Learning Concepts w/FIO member NJAMC

Elite only

MarketDelta Cloud Platform: Announcing new mobile features

Dec 1

NinjaTrader 8: Features and Enhancements

Dec 6

Similar Threads
Thread Thread Starter Forum Replies Last Post
What Is Behind Europe's Stock Market Selloff Quick Summary News and Current Events 3 January 14th, 2012 02:20 PM
Does every stock market in the world have market maker/specialist? lokgotkent Traders Hideout 4 June 18th, 2011 07:22 AM
Indi works on chart, not in Market Analyzer. Null ref check? MXASJ NinjaTrader Programming 5 May 12th, 2011 09:34 PM

All times are GMT -4. The time now is 11:34 AM.

Copyright © 2016 by All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts

Page generated 2016-10-25 in 0.06 seconds with 19 queries on phoenix via your IP