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Monday, 19 December 2016

What are Bucket Shops?



I noticed a bad habit by some readers of financial blogs - too reliant and dependent on their favourite "shepherd"...

For example, got question on CPF matters, instead of checking the CPF website or contacting CPF directly, prefer to be spoon-fed...

If you get a summary from a summary from another summary, what do you think?

Want to bet there's some "oil and vinegar" (油加醋) added to the mix?



How do people get scammed?

Yup, they don't do the verification themselves.

Assuming others will do it for them, and/or have their best interest...

Think about it. Would you help others get richer than you if you do not get any benefits in return?



What are bucket shops?

I think I'll do it differently.

Anyone of you have placed 4D, Toto, or soccer bets illegally with private bookies?

There must be some "incentives" for you the retail bettor right?

If not why you would want to choose this illegal option over betting legally with Singapore Pools?

When you place your bets with these illegal bookies, they are taking the opposite side of your bets right?

These bookies are trading against you.

They make money when you lose; and they also make money when you win (bookies take a cut of your winnings).



And there's another risk.

Some of the bookies never pass your bets to their big syndicate boss.

If you win big, these bookies may "run road".

How to collect your winnings like that?

You can't complain to the syndicate boss - you don't know them.

And please hor! You can't go to the police too!

You betting illegally remember?


And that describes pretty much how a bucket shop operates. Wink.



You whiter than white bei kambing

What? You not "Hokkien peng"?

You "ang moh pie" and educated type?

You catch no ball what I say?

Hello, there's such a thing called Google.

OK, OK, don't hit the face!


Here's the Wikipedia link: Bucket shop

If you read to the  bottom, there's this "See also" section on forex scams, binary options, boiler room, and pump and dump.

You may want to explore own time own target.


Tip: Don't assume everything that's written in internet is correct or up to date.


If you got do your homework first, then if you want to jio me or the fisherman out for coffee to do verification, your questions will be much more intellectually stimulating.

Anything is better than, "What stock to buy?" or "At this price can enter?"


LOL!

 

 

16 comments:

  1. SMOL ah hia,

    Soi peh yor wu jin joi kuan gai. Wu gai tia tio le gai way, oi mang mang piang kiang gai. Da bi wu gai bo xio, tau hor pak lang tok diao.

    (Wah. Replying you in dialect damn difficult LOL)

    ReplyDelete
    Replies
    1. Unintelligent Nerd,

      You gave me a fright!

      My confidence in Hokkien fell a few notches when I couldn't figure out what you wrote...


      Silly me!

      You speaking to me in Teochew!!!

      LOL!

      Kaki lang, kaki lang :)



      P.S. Teochew use "gai"; Hokkien use "eh" ;)

      Delete
    2. Hor. Kaki lang :)

      Wa zhun ke xia tiang nao xin kia hor le tuck seng qio gai! :D

      Delete
  2. Hi SMOL,

    To know the definition of bucket shops, we can google it and read about it. To truly understand how it works, you have to read about it through stories and literature. I think my first encounter of the bucket shop comes from the book by Edwin Lefèvre. In it, he describes how he is able to beat such shops to the extent that they stop taking his trades.

    It'll be an interesting way to remember bucket shops, rather than through its definition haha

    ReplyDelete
    Replies
    1. LP,

      Yes, Reminisces of a Stock Operator by Edwin Lefevre is considered one of the best book on the art of speculation.

      I hope one day I will be good enough to call myself a speculator ;)

      Delete
  3. Read is one thing.

    See it youself how it is done, you never will forget for life.

    ReplyDelete
    Replies
    1. temperament,

      That's why I didn't want to write too directly or too detailed.

      Wetting the appetite but leaving enough blank spaces for the independent reader to explore on their own.


      Some well-heeled readers may want to reflect on those investment banks that sold "questionable" products to their clients but the banks are taking the opposite side of their positions.

      Of course legal; but morally...

      And you thought you were on the SAME team!

      Delete
  4. Hmm...

    From the side of the bucket shops owners, who own the biggest bucket shop?

    It's a singular not plural. Just one shop, one customer, but always there lol

    ReplyDelete
    Replies
    1. Sillyinvestor,

      If we "extrapolate", we may want to think about insurance companies too.

      One of the weird situations out there - we "win" only when we get sick, injured, or meet our maker...

      Who want's to "win" like that?


      We "lose" when we over insured ourselves and never make a claim :(

      Sure, wholelife our dependents sure will make a claim; but the purchasing power has already been inflated away if we live a LONG life.

      Don't believe?

      Check with your grand parents or parents on their wholelife policies bought 30-40 years ago.

      When they bought, the policy payout can buy a private property. Now?

      Delete
    2. Lol,

      SMol, left brain too. The biggest bucket shop owner is our spouse. Because regardless of sickness,wealth.. till death do us apart ... remember

      Oops ...shouldn't call it bucket shop...

      Because we are willing party and we verified again and again Liao. But again, that's why is the biggest bucket shop with only 1 customer. Always return regardless of service lol

      Delete
    3. Sillyinvestor,

      I half suspected it. Didn't want to go there.

      That's not how I view women ;)

      I dumb; but I not stupid.




      I don't buy the 1 customer belief anyway. Let's just say I've gone out with married women before...

      Delete
  5. This just remind me of pawnshops somehow.

    ReplyDelete
    Replies
    1. Small Time Investor,

      Interesting insight ;)

      I got think of casinos, horse racing clubs, etc.

      But I never thought of pawnshops!


      Delete
  6. Hi Fellow blogger. I am new.
    Anyway, this post of yours is funny as I do agree many likes to be spoon fed instead of learning or taking guidance.

    If you deem my blog fit, we can link our blogs.
    http://tobidortosell.blogspot.sg/
    Cheers!

    ReplyDelete
    Replies
    1. Frown88,

      Welcome to this watering-hole!


      You are indeed "new".

      If not, you would have known I don't do link exchanges ;)

      Tip: You may want to read more back posts of mine before you want to associate with me ;)

      I can be an acquired taste! LOL!


      I do try to keep things "natural" around here.

      Now that you've introduced your blog, I'll go visit and say hi :)

      Cheers and hope you have fun blogging!



      Delete

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