Confusion is one of the worst mental and emotional torture. This article is to resolve the confusion of the conflict of how the economy can be so bad and the stock markets are at all-time highs.

I have been trading on the stock exchanges for more than 13 years. Using the knowledge gained from an objective view of life, I have found the tricks and ways to be successful.

Let’s start by explaining how the values ​​and movements of the stock market are determined.

Markets are a weighted average of a very small number of selected companies. While there are thousands of public companies, the top three US markets in which those companies are listed do not represent objective reality.

The Dow Jones is based on 30 companies, the S&P on 500 companies, and the NASDAQ uses 100 companies. Although the Dow includes only 30 of the more than 5,000 US stocks, the combined value of the 30 companies is about 25 percent of the total value of all US stocks.

They use a weighted average of just those few selected companies to determine market value.

This means that if Apple goes up significantly in one day, while most of the other companies on the NASDAQ go down, then the NASDAQ will go up, because Apple is such a large company that it outperforms all others.

Apple is worth more than $ 2 billion. If the combined value of all the other 99 companies is only under $ 1 trillion, for example, then Apple only affects market movement and value twice as much as the 99 combined. Likewise, if all the companies on the NASDAQ go up, but Apple falls, the market will go down.

Big companies get “votes”, so to speak, than small ones.

As of August 2020, the markets are at an all-time high, yet more than 60% of public companies still have significant losses.

Stock markets have nothing to do with the real world market, the chosen few are all that count.

My next article titled; “Emotion Based Stock Trading” will explain another fast market that leads people to make poor investment decisions and show you how to make money with a method I developed that is 95% successful.

People read that markets go up, so they buy shares of different companies, and those shares go down and they are confused. “Why are my stocks going down, or not going up again, if the markets are at all-time highs?”

Because it is not a rising or falling market, but a handful of companies. Let’s use the analogy of a shopping mall. There is a big grocery store in the mall, they are always busy, but small independent stores have no business and don’t make money.

The mall owner says the mall has the highest sales of all time, because the only tenant being counted is the grocery store, ignoring the small stores.

Another example of how the wealthy control the markets was a joint effort between CNBC TV, one of the most watched and trusted stock shows, and Bill Ackman, a billionaire stock trader. Being such a great fund manager and wealthy man, people trust and respect what Ackman says and follow his advice.

On March 18, 2020, Ackman was allowed to launch an emotional spiel on CNBC for more than 27 minutes, far longer than other people they interviewed. She went on the air with such an emotional plea about the Coronavirus and its deadly potential, crying out of fear for her father’s safety. Ackman named several companies and industries that he said would be bankrupt and their stock value would drop to zero.

You can see the full interview here https://www.cnbc.com/2020/03/18/bill-ackman-pleads-to-trump-to-increase-closures-to-save-the-economy-shut-it – down-now.html

As he spoke, the stock markets crashed as investors sold all of their shares in these and other companies. That was the bottom of the market crash, shortly after his television spiel ended, stocks began to rally.

A week later, CNBC reported that Ackman made more than $ 2 billion in profit that week, BUYING the same companies that he claimed were going to be zero value and bankrupt.

This is just my opinion, but it sounds like an obvious manipulation of the stock markets by Mr. Ackman, supported by CNBC. However, the SEC, the government regulator to protect people from this type of market manipulation, has done nothing about it. Once again, the 1% of the super rich got away with destroying the lives of the little people who sold or were forced to sell their stocks at significant losses due to margin calls or panic as the markets crashed during their spiel television.

This is the type of event that makes people distrust the stock market. But we must not give up so easily.

The lesson I’d like to convey to you is that the business world is built on greed, but you already know that. The real lesson regarding the stock market is; Accept reality and find the ways they are trying to fool you, then follow their tricks.

Don’t be mad that they are liars and cheats, that’s just their definition of what they do. They call it smart business. Good and evil are all a matter of subjective opinions. In this world, the opinion of the rich is the one on which the laws and rules are based. So play by their rules and you will win.

But please try to be a better person with the money you earn than those who control the system.