Enhancing Market Efficiency vs Market Manipulation

H

HoundDogOne

This is a serious thread and question.

The only thing that puts stock trading...
On a higher MORAL PLANE than casino gambling...
Or playing 3 Card Monte on the street corner...
And makes it a socially respectable profession...
Is the fact that your trading activity ** increases the efficiency ** of the capital markets...
That are the very foundation of America and it's Capitalist System...
And translates into immense economic and social good.

So when grandma goes to buy/sell some stock...
She pays a little less... or gets a little more...
Because some independent trader has bid more than another trader...
And enhanced market efficiency.

Can someone give me a specific example...
Of a form of ** market manipulation for profit **... that "enhances efficiency".

Or conversely...
Can someone give me an example...
Of a perfectly legal, non-manipulative form of scalping...
That "decreases efficiency".

In other words DISPROVE the following where scalping = short term trading:

All scalping that "decreases market efficiency"...
Is a form of market manipulation and illegal whether enforced or not...

And

All scalping that "enhances market efficieny"...
Is non-manipulative and legal.
 
If good news comes out on a stock intraday and i immediately buy 1000 shares at market, would i be increasing or decreasing efficiency?
 
Here are my 1st and 2nd laws of market efficiency:

If your action makes the market less predictable, your are contributing to its efficiency.

It cost money to make market efficient - the wining traders basically make market efficient at lower-than-average cost.
 
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