5 ms·
Buy and hold is infinitesimal in comparison to day trading options and directives, where fortunes can be amplified exponentially in minutes from insider trading
by nosuchthing 10y ago
Buy and hold is infinitesimal in comparison to day trading options and directives, where fortunes can be amplified exponentially in minutes from insider trading or narratives from news publications which have an effect on the reactionary "dumb money" of the common public traders.
- ericd 10y agoThey can also be lost just as quickly when the market doesn't conveniently act like you think. If the system was rigged in the way you suggest, hedge funds would do much better as an asset class than they actually do (after fees, they've significantly underperformed an S&P 500 index fund). WRT your claims of rampant insider trading, when the SEC sees heavy option volume before public news breaks, frequently, someone goes to jail.
- nosuchthing 10y agoWith off shore accounts, dark pools, HFT, and an excess of money, one can imagine there are loop holes. https://www.bloomberg.com/news/articles/2014-07-23/don-t-tell-anybody-about-this-story-on-hft-power-jump-trading https://www.bloomberg.com/news/articles/2014-07-23/don-t-tel... http://www.npr.org/2013/04/09/176579895/to-find-insider-trading-follow-the-kids-money http://www.npr.org/2013/04/09/176579895/to-find-insider-trad...