The world may be teetering again on the precipice of economic disaster but those with any investment in the popularity of Alessio Rastani, a hitherto unknown "independent trader", had a worse day than most after his memorable appearance on television yesterday morning. "I have a confession, I go to bed every night and I dream of another recession, I dream of another moment like this," he told dumbstruck BBC News presenter Martine Croxall, when asked if the proposed eurozone bailout would work.
The interviewer thanked the trader for his candour but told him that "jaws had dropped" around the BBC newsroom while they listened to his answers shortly after 11am. "I'm a trader," he said. "We don't really care whether they're going to fix the economy, our job is to make money from it. "The 1930s depression wasn't just about a market crash," he added. "There were some people who were prepared to make money from that crash. I think anyone can do that. It's an opportunity."
The three-minute clip quickly spread online, provoking outrage. In the interview, Mr Rastani went on to advise "everyone watching this" that, "This economic crisis is like a cancer, if you just wait and wait hoping it is going to go away, just like a cancer it is going to grow and it will be too late." He said it was "wishful thinking" to believe that governments could prevent another recession.
On his Twitter profile Mr Rastani describes himself as an "experienced Stock Market and Forex trader" who is "dedicated to helping others succeed". Some were as quick to praise him as others were to damn him. Comments on his Facebook page included: "Great interview" and "talk about the truth," while others described Mr Rastani as a hero. The current crisis bears considerable similarity to that which engulfed the world in 2008, though thus far it lacks the talismanic hate figure generously provided in the form of the former RBS chief Sir Fred Goodwin. The slick-haired, pink-tied and American-accented Mr Rastani may yet fill the void.
Quite how much he personally stands to gain should the financial world collapse again is unclear. The profile on his website, Leadingtrader. com, would suggest he is more reliant on "professional speaking" than his wizardry in the money markets to keep in him in hair gel. But after his performance yesterday it may just be that, like the eurozone, that particular sideline is beyond salvation. "My belief is that anyone who wants to improve their income and achieve success in life, cannot afford to ignore learning how to trade," he says.
"Based on Alessio's sound advice, I pulled my money out of the markets just before the 2008 stock market crash. He saved me a fortune, not to mention my pension!" claims a client named as Maurice E. Though Twitter users were quick to pick up on Mr Rastani's outburst, his dire forecast went mysteriously unnoticed by the wider financial markets. Shares in French and German banks rose by as much as 10 per cent, as traders analysed a proposed three trillion euro (£2.6 trillion) rescue package for the single currency.
An honest broker?
An honest broker?
“If you trust in yourself, and believe in your dreams, and follow your star. . . you'll still get beaten by people who spent their time working hard and learning things and weren't so lazy.”
Re: An honest broker?
I find it hard to conceive of anyone stupid enough not to have known that traders make money no matter if the index goes up or down.
How dumb do you have to be?
yrs,
rubato
How dumb do you have to be?
yrs,
rubato
Re: An honest broker?
I don't think he was talking about making commissions on trades ("making money whether the markets go up or down"), but rather making money by speculating on the downturn, which is profiting from the misery of other people.
Not that there is anything wrong with that.
Imagine a group of funeral directors celebrating a plane crash; kinda like what this guy is doing.
Not that there is anything wrong with that.
Imagine a group of funeral directors celebrating a plane crash; kinda like what this guy is doing.
Re: An honest broker?
Brokers make money by making bets about whether the market will go up or down. I thought that was obvious to even the meanest of intelligences. I was wrong.
yrs,
rubato
yrs,
rubato
Re: An honest broker?
A "broker" is a licensed "professional" who facilitates securities transactions for clients, who are investors. S/he makes money when people buy and sell securities; s/he is paid commissions and/or fees. Period. It makes no difference whether the investor realizes a gain or a loss, the commission or fee is the same.
An investment advisor advises clients on the likely future movements of prices of particular securities (or types of securities) and possibly commodities, so that their clients might profit by their expertise. They generally make money based on the value of the clients' portfolios. Perversely, they get paid whether their advice proves correct or flawed.
Any investor can, with sufficient resources, purchase and/or sell securities and commodities (and tangibles). The good ones manage to purchase them at a price that makes a gain likely at the time of future sale. This is sometimes referred to as "Buy low, sell high." S/he can also "sell" certain un-owned securities in the future, hopefully at a lesser price than today's price, and thus profit from a decrease in the price of that security. I believe this is the phenomenon under discussion in this thread: profiting when the market goes down.
The following statement is pure, ignorant, blather:
"Brokers make money by making bets about whether the market will go up or down."
Brokers do not make bets. They facilitate transactions.
I thought that was generally known. Apparently not.
An investment advisor advises clients on the likely future movements of prices of particular securities (or types of securities) and possibly commodities, so that their clients might profit by their expertise. They generally make money based on the value of the clients' portfolios. Perversely, they get paid whether their advice proves correct or flawed.
Any investor can, with sufficient resources, purchase and/or sell securities and commodities (and tangibles). The good ones manage to purchase them at a price that makes a gain likely at the time of future sale. This is sometimes referred to as "Buy low, sell high." S/he can also "sell" certain un-owned securities in the future, hopefully at a lesser price than today's price, and thus profit from a decrease in the price of that security. I believe this is the phenomenon under discussion in this thread: profiting when the market goes down.
The following statement is pure, ignorant, blather:
"Brokers make money by making bets about whether the market will go up or down."
Brokers do not make bets. They facilitate transactions.
I thought that was generally known. Apparently not.
Re: An honest broker?
Consider the source.
“If you trust in yourself, and believe in your dreams, and follow your star. . . you'll still get beaten by people who spent their time working hard and learning things and weren't so lazy.”