4 ms·

This guy is going to lose all his money.

• _pius 17y ago
  Why?
  • barrkel 17y ago
    You can read more about it here: http://marketprognosticator.blogspot.com/2009/07/real-vampire-squid-on-face-of-humanity.html http://marketprognosticator.blogspot.com/2009/07/real-vampir... (I posted this in reply to Luca's post when I first read it.) The basic idea is that you chase the herd. The problem comes from two areas. If sentiment changes, and there's a big herd, the price can change very quickly, and you might not be fast enough to come away with gains. The other problem is the transaction cost (commission, stamp duty, capital gains tax, etc.) of chasing the momentum, continually trading stocks, eating away at gains.
    • known 17y ago
      I believe 99% of flaws in stock exchanges can be prevented if every trade is subjected to http://en.wikipedia.org/wiki/Information_asymmetry#Adverse_Selection http://en.wikipedia.org/wiki/Information_asymmetry#Adverse_S...