info-money circle

If I have to describe how the market works in a single image, I use the one given below, I call it the info-money circle. Let's take a close look at it and all that it represents 

Demystifying the info-money circle

Market is made of participants who belong to different circles like the promoters, insiders, friends of insiders, big investors, operators, brokers & traders, institutional investors, analysts & reporters, savvy & experienced investors, common investors, dreamers & fools

Information is the main price driver, this keeps originating at the core of this concentric circles and flows outside. Ideally information should reach all participants at the same time in a perfect market but that is a myth. People in circles closest to the origin of the information or the core of the concentric circles receive the information first and it gets dispersed to the outer circles through the stock exchange and people inside the inner circles

Information is often manipulated as it flows outside to increase the odds against the participants in the outer circle and many fall victim to it unless off-course you are smart enough to distinguish between genuine and manipulated information

Money flows from the outer circles, from participants who receive the information last and act last --> to --> the inner circles, to the participants who receive the information earlier and act earlier

There are lot of participants in the large outer circles and very few in the small inner circles

Large number of participants in the outer circle keep losing money and all that money goes to the few participants in the inner circles and hence the participants in the inner circle are able to gain multi-fold. For each winner there are hundreds of losers in the market circles. 

The core participants in the inner circles are strong hand participants and they stay in the market for really long periods of time whereas the participants in the outer circle are weak hands and they keep changing, come, loose money and go and mostly come again 

Few smart investors in the outer circle also make money because they understand the information well and are able to put it in context with time and price and ride the larger trends compared to immediate triggers. These guys slowly make it to the inner circle using their growing influence based on their financial gains and are able to compound their victories

Few fools in the inner circle loose money because they misuse and exploit their insider information, eventually get caught in the wrong side of the law and are thrown to the outer circle

You have a good chance to make money as long as you are smart enough and not in the outermost circle

During boom cycles outer circles keep growing, during bust cycles outer circles are decimated. Inner circle remains fairly constant. Sometimes if the bust cycle is too long then the participants in the inner circles also compete against each other and get decimated between themselves 

The concentric circles also represent the trap of the market, easy to enter difficult to exit and the resistance that is inherent in the market between the inner and the outer circles. Remember though it is easier to get out of the market from the outer circles, not so easy once you are deep inside it.

So should I enter the info-money matrix?

Well this is one of the only very few places in the world where you can make it really big starting with nothing, in pure money terms. Just keep in mind that you have to find yourself a way to the inner circles and not stay in the outer one's. Also remember getting there will not be easy, you will face lot of resistance from the powerful and wealthy inner circles and the more you get in, the more difficult it will be to get out. So which pill are you going to take? red one or the blue one?