Don't Be Fooled by These Trading Apps

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In this episode:

• The rigged reality of trading apps and why retail investors keep falling for Wall Street’s shell game
• The dark truth about naked short selling — and why it’s been happening for decades
• A former Citadel engineer admits: “The game is not fair — I helped design it.”
• Why day trading is the carnival game you’ll never win — and how to build real wealth by investing, not gambling

If you’re playing their game, you’re the mark. Be an investor, not a carny’s next prize.

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.

Speaker 2 (00:16):
Wall Streets carnival games, Step right up, step right up, sucker,
be a trader, download or n app and you too
can be rich. I tell you, yeah, I laugh. I
can kind of remember back when I was younger, we
had a fair Altamont Fair in our town and they
would have the connies in the games that were there,

(00:38):
and we knew, we knew that most of those games
were fixed. Now you're an adult, right, you're smart, okay,
and you know, come on, don't sell yourself out Frado
Coleoni style. I'm smart, I'm smart. I need respect. Well,
if you know a game is rigged, you know a

(01:02):
game is rigged, you know that they're gonna get you,
You're gonna lose, why do you play it? In a
quick sub reference, I keep thinking of the movie Wargames,
which Greade eighties film, you know, talking about you know,
the computer AI and it realizes that nuclear war is
not a good idea because nobody wins in this case.

(01:25):
Somebody does win, it's just not you. All of social
media is a flutter and people are angry and they're
shaken their fists about how this is not fair and
that's not fair and naked short selling and FINRA is
going to be changing the rules and what they can
disclose when it comes to various different loan balance and people.

(01:50):
Nothing new this, There is nothing new about this. I
covered this extensively. This was back in two thousand and five.
Two thousand and five, Well, they were putting together a
big expos on short selling, naked short selling and how

(02:11):
companies are manipulated. And once Wall Street found out. Now
you gotta understand Wall Street spends a lot of money
on advertising on all these major networks. Yeah, they ran
the piece. They ran it on a Sunday evening in
August when they knew nobody was watching talking about all

(02:32):
the issues with naked short selling. Now, if you're not
familiar with naked short selling is no, no, it's not
righted r. Okay. What it means is is that when
you short a stock, Okay, this means you are you
think something is overvalued and it's going to announce you're
going to shorten. So what you do when you short
a stock is you borrow the shares. Yeah, you borrow

(02:57):
the shares, and whatever you borrow you have to return.
So what you're hoping is is that you borrow the shares,
you sell the borrowed shares. Stock goes down, you buy
it back at a lower price, and then return them,
and then you make the difference between it two. You
see how that works well. Anyway, Naked short selling is

(03:19):
when you are selling something that you didn't borrow. And
this happens all the time, and it's played a part
in some of the meme stock crap. And then again
people getting all bent out of shape that it's not fair.
It's not fair. It's not fair. It never has been fair.

(03:39):
It never has been fair. So why do you participate
in this nonsense? It makes no sense. Like I said,
it's like some ridiculous carnival game for crying out loud
that you keep playing and you keep losing. I don't
play this nonsense.

Speaker 1 (03:57):
I know it well.

Speaker 2 (03:58):
I understand how how trader operate. I know how they
can pick off various different stops that are out there.
It was funny this actually what they put this on
Fox Business. You had a former Citadel engineer on trading.
The game is not fair and it never has been.
Individual investors, even when operating in a swarm, are destined
to lose. How do I know? I help design the game,

(04:20):
So why play? You don't have to trade to be successful. Okay,
be an investor. Be an investor. Trim positions as they
go up, rotate, you know, various different asset classes, understanding valuations.

(04:44):
Don't be looking at your phone every two second. Old
you're gonna lose, you will lose. There's a right way
and a wrong way of doing things. If you think
you're gonna beat those guys on Wall Street crazy for
crying out loud. They took down a global economy and

(05:04):
they got bailed out by the taxpayer. For you think
that you're going to beat them. Be smart people, watchdog
on Wall Street dot com