Want to manipulate the stock market? Not so hard if you are a nation-state.

Prices within financial markets should be determined by logical financial calculations.

If this were the case, the path to financial freedom would only require the study of underlying concepts such as:

• Economics
• Financial analysis or asset value and future earnings
• Technical Analysis of trading charts

The reality is that markets are not logical because people are not logical.

The price of something is equal to what people are willing to pay for it.

At the time of writing this article, the stock market has dropped substantially and well-known companies have stock prices with market caps that are lower than the fundamental value of their businesses or even the assets they hold (MSTR, Amazon).

Once you understand that irrational decisions drive the market you will start to see how it can be manipulated.

Now, imagine you are the leader of a nation…

You want to buy assets below their intrinsic value so that you can profit in the future when the market rebounds.

All you need is to scare people, some methods which can do this:

• 🚀Move your military to the border of a neighbouring country or perform visible military exercises.
• 💻Hack another nation or a company
• 🎟Interfere with a national election
• 🚫Announce new laws like banning cryptocurrency (again)

Understanding to take advantage

Financial markets are irrational and influenced by powerful people.

If you want to protect your financial outcomes, you need to mix psychology and news with fundamental economic analysis. Try to determine if market moves are caused by fear and greed or actual economic changes.

Remember every trade you do, has someone else on the other side. Ask yourself why they are making the trade with you? Are you being manipulated?