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Why do you suppose that people managing significantly larger sums of money than you have available are not also investing based on this information? If they wer
by stouset 7y ago
Why do you suppose that people managing significantly larger sums of money than you have available are not also investing based on this information? If they were, your edge would rapidly drop to zero as all of the better connected and better funded investors buy up the over/under-valued assets.
- lbotos 7y agoIn trading as an individual, you don't need to beat the big guys, you just need to hit your objectives (hedging/profit targets). If someone moved later than the big guns, but in the same direction, with reasonable risk assessment/management, then it can still be profitable. If they moved against, and had reasonable risk management, it should minimize losses.
- Nasrudith 7y agoIt assumes rationality not omniscience or complete understanding and the markets are a big place - not space big but still quite a lot even at the level of public news. Even then it would take time for the easy money arbitrage to stabilize.