Swedish Financial

What would be analogous to "Bluffing in Poker", when it comes to the financial/stock markets?

PLEASE READ: Okay we all know much as in Poker, Knowledge, Mathematical Skills, Reading your environment/opponents, Psychological Skills and Control, Risk/Money Management, Constant Vigilance, Luck, etc., all play a crucial role in an overall winning stock market investment strategy as well. BUT I WAS WONDERING WHAT WOULD BE ANALOGOUS TO “BLUFFING IN POKER” WHEN IT COMES TO STOCK AND DERIVATIVES MARKETS. Or does the concept of bluffing even apply in this case? I am NOT talking about illegal stuff such as insider’s information, market fixing schemes, etc., BTW. ...Thanks in advance.

Public Comments

1. I dunno, I think the only thing that would apply to this that I can think of is when it is unsure of who owns how much of the stock and someone who has more than 51% doesnt tell anyone. (Owning more than 51% gives you some sort of priority rights over the adminsitration of the company. I'm unsure of the details.) That way they can listen in on ideas that the rest of the stockholders have before announcing what they decide they want done. I can only think of this happening the initial time when the person first successfully would gain 51% but I could see it happening.
2. I don't know that there is an exact analog as far as equity markets are concerned. There are however, any number of old tricks, and new ones are being invented all the time. An easy and common example of this is called "pump and dump". Basically, insiders in a corporation would be touting the performance of their business (perhaps even cooking the books as in the case of Enron) to artificially inflate the stock price while all along they are selling their shares or cashing in their stock options as the stock rises. I recommend reading a book called, Reminisces of a Stock Operator, by Edward Levebre (Lefevre(Sp?)). And another called, the Great Game, by John Steele Gordon.