3 ms·
I know that due to being interested in a specific industry, lets say Video Games, I can combine a general understanding of the environment, to a specific unders
by moritonal 1y ago
I know that due to being interested in a specific industry, lets say Video Games, I can combine a general understanding of the environment, to a specific understanding of certain companies and the games they're making. If I see in a low-key mailing list that a company is making a new game that I know will line up well with the direction the industry is going, then I can invest in that company and likely be ahead of the market.
My hunch is that if you spend more than 6 hours a week studying the mood of a industry, you would likely be "luckier" than the market (although all risks still apply). I also believe a LLM could do exactly what I do with enough investment.
- miningape 1y agoThis is exactly how I make money shorting (or buying puts on) companies like Ubisoft and EA. They're pretty much hated by the entire gaming community and their games do not perform well - investors actually believe the stuff they say in press conferences so often the stock prices are over inflated and get corrected about 1 week post launch.
- iTokio 1y agoBe careful, shorts are generally not for retail investors. Shorting is about predicting when a stock will go down. Not that it will go down. Because - there is no limit to how high a stock price can go - the market can stay irrational longer than you can remain solvent
- gnarlynarwhal42 1y agothere are ways to cover yourself, either buy a put (like he mentioned) or if you are short shares then buy a call. both of these have defined risk. also more advanced options strategies would let you adjust where you'd profit and where your risk is in the trade