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If stock advisors had secret knowledge that helped them make money on the stock market they would use it to make money on the stock market not tell people about
by from-nibly 2y ago
If stock advisors had secret knowledge that helped them make money on the stock market they would use it to make money on the stock market not tell people about it.
- hakfoo 2y agoIn the stock market, though, saying "I know $FOOBAR is going to overperform on earnings" could trigger other people to pump the price and INCREASE your payout. Conversely, if you know Santa's Little Helper is going to win the 6th race and told everyone, that would drive DOWN the odds and your potential payout. You'd have to have insider knowledge, then fabricate and disseminate a lie so that the actual winner gets bid down to 99:1 least-favourite before the race. So the incentive model is different. In a way, in the stock market, being seen as a psychic genius can be a self-fulfilling prophecy. $FOOBAR doubled in price because people chased your prediction, not due to fundamentals.