4 ms·

Then there is the story of the really sophisticated guys who didn't get caught. Unfortunately that's a story you won't be reading online, but will just have to

Then there is the story of the really sophisticated guys who didn't get caught. Unfortunately that's a story you won't be reading online, but will just have to imagine. It really makes me question the sanity of doing this illegal trading. For as much effort you could do something legal and make money. Maybe not as much but surely without the risk of going to prison.

raisincakes 11y ago
Sadly, insider trading is pervasive on wall street. You don't read about the guys that don't get caught, and there are a lot of them. Remember, if you can't spot the sucker at the table, you're the sucker. That's why I keep my money far away from the stock market except for index funds.
- kasey_junk 11y ago
  If you believe that the entirety of the market is rigged, what possible reason is there to make an exception for index funds?
  - raisincakes 11y ago
    Because individual stocks can be rigged in either direction (for or against your position), but at the level of sector or index funds all of that activity balances out.
- bbcbasic 11y ago
  > That's why I keep my money far away from the stock market except for index funds. I think the sucker at the table is the amateur day trader who thinks they can out-smart the market, but really they are gambling. On the other hand spotting an undervalued stock and buying it and holding for the long term, especially with a portfolio to protect you isn't too suckerish and should be quite immune from whatever the insider traders and high frequency algo guys are doing.
MichaelGG 11y ago
That's simply not true. Having certain knowledge can put you in a vastly asymmetrical position as far as white or black hat goes. I'm in that position myself. I've enough attacks and some 0days that I could retire off a rather small bit of work (I discovered one guy making $30k/mo recurring off of an amateur attack). Instead, I'm trying to start a security company. It's loads more work and probably not as much reward, at least easily. In fact, it would not be hard to find people where you might say the opposite: they're insane for not being a criminal.

raisincakes 11y ago

Sadly, insider trading is pervasive on wall street. You don't read about the guys that don't get caught, and there are a lot of them. Remember, if you can't spot the sucker at the table, you're the sucker. That's why I keep my money far away from the stock market except for index funds.

kasey_junk 11y ago
If you believe that the entirety of the market is rigged, what possible reason is there to make an exception for index funds?
- raisincakes 11y ago
  Because individual stocks can be rigged in either direction (for or against your position), but at the level of sector or index funds all of that activity balances out.
bbcbasic 11y ago
> That's why I keep my money far away from the stock market except for index funds. I think the sucker at the table is the amateur day trader who thinks they can out-smart the market, but really they are gambling. On the other hand spotting an undervalued stock and buying it and holding for the long term, especially with a portfolio to protect you isn't too suckerish and should be quite immune from whatever the insider traders and high frequency algo guys are doing.

MichaelGG 11y ago

That's simply not true. Having certain knowledge can put you in a vastly asymmetrical position as far as white or black hat goes. I'm in that position myself. I've enough attacks and some 0days that I could retire off a rather small bit of work (I discovered one guy making $30k/mo recurring off of an amateur attack). Instead, I'm trying to start a security company. It's loads more work and probably not as much reward, at least easily. In fact, it would not be hard to find people where you might say the opposite: they're insane for not being a criminal.