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The Perils of Wall Street's "Candy Crush Saga."

Wall Street


It's a tale of greed, money, and an excessive lifestyle with all of the energy and edge it has, for all the wolves of wall street. Filled with ambitious participants, who are never satisfied. Undertaking their exhausting journey in their pursuit to rise and sometimes fall. Sociopaths who don't care about anything but trading your stock shares from you faster than they can then sell them back to you for a profit.

Typical Trading Day
Photo by Spencer Platt/Getty Images

The players in the wolves of wall street host plenty of despicable men, who're entertainig us like we're a part in a comedy show. Always aware they're teaching us a lesson about the dangers of finance we’ve been enjoying.

In author Michael Lewis new book,“Flash Boys: A Wall Street Revolt,” he alledges that High Frequency Traders are in effect stealing from individual investors, pension funds and literally anyone else who ever buys or sells a stock. There's are many ways according to Lewis how not to be a victim in stock market is "allegedly"rigged.

The stock market is an incredibly lucrative system and as close to risk-free as any position on Wall Street ever gets. That is when buyers are connected with sellers who traditionally function alongside large brokerage houses, floor traders and trading desks at major banks. It’s an incredibly lucrative system and as close to risk-free as any position on Wall Street ever gets.

The trading desks of four different major financial institutions posted gains every single day during the first quarter of 2010. The tradings desks of JP Morgan , Bank of America , Citigroup and Goldman Sach, all combined posted 244 winning trading days against zero losses. But even in a hot market for new stocks, investors can quickly get cold feet.

And with pricing a deal on the low end can risk injecting an aura of weakness. King Digital Entertainment, a company that is profitable and has seen explosive growth with the success of its hit mobile game played by females with too much time on their hands "Candy Crush Saga."

A strong initial demand became tapered when investors got word about the pricing of the deal and the mix of buyers. Last Tuesday night as the new stock priced, investor sentiment took a negative turn and it fell into a downward spiral last Wednesday, March 26th, as trading began, people familiar with the deal, revealed the stock ended last Wednesday's session down 16%, the worst opening for a U.S. listed IPO this year.

King and its banks, led by J.P. Morgan Chase +1.12% along with Co., Credit Suisse Group +2.05% and Bank of America Merrill Lynch, decided how many shares investors with access to the IPO would get and at what price. IPO pricing is a delicate dance in which the company stands to gain by selling its stock at the highest price it can fetch, but investors want a lower price that has room to climb once shares begin trading. When banks are confident of high demand, they can chance a higher price. With IPO orders representing demand that approached 10 times the amount of shares.

Stocks fluctuate throughout the day but if you enter a limit at or near the market price you’ll mostly likely get your order filled. Don’t be afraid to wait and don’t get talked into paying more than your limit price. Don’t be a victim: use limit orders, if Microsoft is trading at $41.15 today. If you want to make a long term investment in the company simply set a Limit of $41.20 and wait. By law you won’t pay more than $41.20 per share plus commission. Remember that, long term day trading is a sucker’s game for individuals but investing for the long-term is the best way to build wealth.

Happy Trading!

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