Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

Dangling0826

(65 posts)
Thu Jun 11, 2026, 06:03 PM Jun 11

What is wrong with stock market traders

Today, the Dow Jones rose 929 points because Trump announced that a deal to end the Iran war is coming soon, and traders jumped on it immediately. When a deal does not materialize, the market will just crash. Trump has done this several times. Why does the market keep falling for this? It does not provide any market stability.

17 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies

PatSeg

(53,917 posts)
15. But a lot of wealthy traders are making huge profits
Thu Jun 11, 2026, 07:37 PM
Jun 11

Who knows, maybe Trump lets some of the bigger ones know ahead of time what he's going to say.

Response to TxGuitar (Reply #1)

walkingman

(11,270 posts)
3. I think it is insider corruption but no one is pushing back (SEC) because they do as they a told.
Thu Jun 11, 2026, 06:09 PM
Jun 11

Corruption does not matter to those that worship their cult leader and those that becoming wealthy,,,they love it.

ProfessorGAC

(77,610 posts)
6. Short Term Profits
Thu Jun 11, 2026, 06:11 PM
Jun 11

I think big traders don't actually care about world events.
They just look to buy bargains after a dip & sell-off when a threshold is hit. They know the market, overall, overreacts to everything. They just ride the same waves they help create.
They're not falling for anything. They're counting on the chaos caused by The Failure.

GreatGazoo

(4,797 posts)
12. Traders bet both ways (hedge)
Thu Jun 11, 2026, 07:22 PM
Jun 11

Their job is to invest as much money as possible with as little risk as possible. They aren't psychic and they aren't gullible. They just cover everything that can happen, good or bad. Up or down. And then something shifts the balance and all the numbers move. For pro traders the market is like a horse race but you can change your bets during the race. The odds of 'boots on the ground' went down so the market went up as they all adjusted their balance.

Trump was claiming we were going to take Kharge Island. Things were escalating. Now he says we aren't. It's not that either one of those was/is true. It is how safe does it seem to buy stock at any moment in time amid this chaos.

jmbar2

(8,261 posts)
14. Part of it is futures contract rollover which happens quarterly
Thu Jun 11, 2026, 07:30 PM
Jun 11

Institutional investors hold futures contracts as hedges against future stock price fluctuations. Once a quarter, they have to roll their contracts from the ones dated this quarter, to next quarter's contract. The process takes two weeks and started about a week ago. This week, futures volume is about half usual, as half are still in June contracts, while the rest are in Oct. So big moves in speculation, with fewer futures to hedge, contributes to high volatility.

To make matters very complicated, they are having to hedge against a ton of speculation on the SpaceX IPO, the entry of millions of small retail traders into markets as a result of dropping of Pattern Daytrader rules, as well as Trump manipulation.

These conditions are unprecedented. A lot of individual traders are sitting on hands, waiting for the markets to figure themselves out. Tomorrow and next week will be wild.

Latest Discussions»General Discussion»What is wrong with stock ...