Large institutions execute massive trades in dark pools before news breaks, keeping retail traders in the dark. The SEC legalized this practice in 1979. Retail traders get stale information while institutions move first.
Chapters
In the market, we know that there's large traders, but nobody really knows what that actually means. And there's a disconnect in the education side of, of in the market as traders, because when you say, well, there's a billion-dollar trade in, in Apple, and it's like, so like, how does that affect me as a retail trader? So Are you aware that big players in the market control price action and have their trades filled before the news actually hits? Let that sink in, right? Grossly unfair if you're the retail trader. And these trades are filled off exchange, so you don't even see them while they're being filled. And this is my run-on sentence. Price is already decided when they enter their trade. So what they do is they legalized it where they can do it on private exchanges and then report the trade after it's already done. So the problem was solved with the creation of dark pool exchanges. They were created in 1979 where they lobbied the government. So if you have a big, big enough problem, you lobby the government. So the SEC allowed dark pools to be created and allowed to be traded off exchange for the last— what is it? So the institutions, this was their edge. Now it's perfectly legal and they're in and out before retail and the retail traders are left holding the bag. So if you turn off the news and follow the money, you'll be far more profitable.
