Equedia Letter

How to Fix the TSX Venture Problems14 min read

Comments (17)
  1. Charles says:

    Who really cares? Only day traders who are worse than any robot.

  2. Vinnie in Sun City says:

    Back in the 1960’s I could go to my small bank in Ohio and borrow on a “Signature Loan”. Recently I went to my Chase Branch Bank,and out of curiousity,(I certainly was not anticipating a positive result) I asked for a “Signature Loan”. The branch manager (?), (what she manages is a mystery to me)had such a smirk on her face I felt like I’d been caught with my hand in the “cookie jar”. Some time later, I asked to purchase a small cap stock thru my investment account and was told that I could not make such a purchase thru Chase. I have been with this organization thru three name changes, 5 local “managers”, and untold quantities of various “Tellers”. Banking today is a joke compared to what it was before WWII. Markets are the same. I have searched for sometime to learn how the commodity market is being manipulated (remember the Hunt Brothers?)
    with no success. My house rule now for our family is; Trust noone except “Daddy”! (Equedia excepted, of course).

    1. Kim D says:

      I’ve been following Equedia for years. I knew Ivan had written stuff about manipulation in commodities many times before. So I searched and here is what I found:

      There’s even more but I couldn’t find the specific ones

  3. john page says:

    I have been investing for ten years and so far have lost 30 %………it’s no fun for myself or small companies trying to survive if the rules favor crooks.So “who makes the rules” are they crooks as well or just plain dumb…

  4. Why not make a rule that EVERYONE has to hold a stock for a minimum time? This could be one minute, ten minutes, etc. Whatever proves effective in removing the speed advantage that the computers have. This would slow things down to a more human oriented pace. Brian.

  5. David Woodward says:

    If you were made to hold shares for at least until the next trading day, all high frequency transactions would be made basically useless.

  6. Short selling high frequency trading algorithms derivatives all benefit the rich few.The average guy in the street does not stand a chance we are wasting our time and money in this casino were the house wins every time.

  7. Harold Gussaroff says:

    The creep of the large banks is growing and unstoppable for reasons having it’s origin say 5000 years ago when a seemingly very dramatic event took place. What follows will likely make you sit up and take notice. Regarding that event, since I was not there and not a witness, and testimonies have repeatedly proven unreliable I choose to call it an Ferguson MO. event – does “hands up, don’t shoot” sort of clear up the purposely too brief quote?
    Because of that event the Jews have been wrongly persecuted and refused acceptance to the trades apprenticeships. Given that the Jews were unusually receptive to any newly evolving service to the public as industrialization progressed and certain individuals amassed great wealth (gold ownership) there was an unfilled need for some super safe place to store the growing amounts of gold. The Jews stepped in to provide this new services which started with the term goldsmiths and today is known as major city (mostly New York City) banks. To illustrate what the wrongly persecuted Jews did with that goldsmith title let’s just refer to the Rothschild families which became the wealthiest in the world.
    Long story short: Listen to the superb lecture by the historian/author Edward Griffon regarding his book The Creature from Jekyll Island. Note his question regarding why the banks needed so much money.
    After that, I’m confident you will have what I’d call the AHA! moment. The growth of the large and only the large banks who are using certain principles and have certain relationships will grow.

    So far they had no opposition in implementing their plans. Essentially the banks led by the Federal Reserve System (employing Quantitative Easing) are using the savings of the people to control the world. Ever think about all the monies given to the heads of states? That’s mostly from US citizens in the form of taxes and diluting the value of the US dollar. There goes the retirement funds and yes the small cap banks and mining companies.

    New Look: China hates the dominance of the US dollar and is creating plans and acquiring massive tons of gold. Take it from there……..

  8. nazirji says:

    Very interesting article – thank you – just put an end to high frequency trading and the robot trading – develop a system that would effectively end the menace – a mechanism that would ensure that only real trading occurs – no fake market orders – no false price action – no more rigged market making – the changes that TSX and Venture plan to implement in Q2015 will do zilch

  9. John says:

    I missed your weekly updates, but glad to hear your fine.

  10. jrj90620 says:

    Would help if govts were run by people who understood business and weren’t govt worshippers.Here in California,if you make any reasonable income,you are quickly in the 10% tax bracket,There is no break for longer term holdings.10 seconds or 10 years,the tax is the same.For state and federal taxes,if you have a $million dollar profit,you pay taxes on the whole profit.If you lose $million dollars,you can take only $3K tax loss and must carry forward the loss to next year’s taxes.Wish govt people weren’t so pro welfare and anti investment and work.

  11. Bob Drummond says:

    First let me say how much I enjoy your letter. I lok forward to it every Monday morning.

    Your quote,”Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime.”
    – Moses Maimonides

    I might suggest an updated version, “”Give a man a fish and you feed him for a day; teach a man to fish and He/she can set up a corporation, apply for a government loan & grant, transfer the money to an offshore account, go bankrupt, stick the taxpayer with the loss and be declared a captain of industry by the state.”
    – Bob

    Keep up the good work.

    also Bob

  12. Tony brogan says:

    Education is the key. Wealth is not. I do not have a clue what is going on in IPO’s but I could learn and then invest. At the moment I am deterred and deprived.

  13. Tony brogant says:

    Shorting per se is not a problem. Naked shorting or bare naked shorting is. One should only be able to short a stock one already owns by virtue of a buy order at the lower price sold by a willing seller who owns the stock.

  14. Bob Innes says:

    The shorting issue hasn’t been in the news lately but it should be. A truly evil practice that, as you say, destroys fledgling companies. Please visit stopshortingstocks.com for a more complete understanding of how this nefarious practice really works and follow the links to a petition aimed at stopping the practice.
    Thank you.

  15. Larry Reaugh says:

    When approvals for the removal of our Uptick Rule was approved by all the Exchanges and Securities Commissions in February 2011 the Venture Exchange immediately began its steep decline even though the Appeal did not take effect until October 2012. I believe the only way to restore Investor Confidence and revive the TSX Venture is to ban shorting on the illiquid Junior Exchanges. The partial reinstatement of a Uptick Rule by the US SEC in February 2010 ( only short a stock down 10 % in a day ) has propelled the Dow to new highs. It has not helped the illiquid small caps as they have continued to be decimated.

  16. robert card says:

    Short selling of all kinds in the junior resources market should be eliminated.
    The BCSC says they are protecting investors but investors get the hell scared out of them when a stock they just bot gets sold down for no reason. Short selling destroys confidence in the markets.
    Why the Securities Administrators cannot see this is beyond me. Only the ‘big’ guys can afford to drive a stock down and wait for the poor suckers to sell their shares cheap so the short can be covered.
    I have spoken to many investors who complain that stocks get shorted for no reason and they are reluctant to buy. It is human nature to be scared when something you do not understand happens. If you just bot a carefully reviewed stock and then it gets clobbered for no reason it destroys confidence in the markets.

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