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Sounds like flash trading except the institutions are the ones cheating the normals.

I'm not sure I understand the market dynamics well enough to answer this question adequately. I suspect a completely random strategy may very well be better than most non-random strategies which a typical retail investor/daytrader might use. I guess what I would say is stocks are mispriced when...

My read on OP's question was that he was contending that random entries/exits would yield a roughly 50/50 (breakeven) result in the long run (minus commission and minor slippage). I don't think a "consistently positive result" was even considered as a possibility. What I'm contending is that...

I'm absolutely just guessing, but I would estimate that a "random" bet on a stock will probably yield a 45% win rate, 55% lose rate. In a sideways market, I guess trading is a zero-sum game and the winners would be the Goldmans, BofA, Raj Rajaratnams of the world. Basically insiders trading...

How do you explain Rajat Gupta? Don't tell me an officer with a high 6-figure salary won't want a quick 7-figure payout. Greed rules.

This happens every day, but not being done by board members but being done by computers.

Not sure why the need for analogies. You think insider trading doesn't hurt individual investors and it should be legalized "a little bit". I think it does hurt individual investors more than they're aware of, but I do think the general population is a flock of sheep anyway so I do the best I...

If I'm the residential owner that sold out to the guy, and my real estate broker didn't tell me about the zoning change, I probably have grounds for a lawsuit. I do think this is one of the ways for corrupt politicians to enrich themselves. Happens a lot in developing nations.

Interesting segway, but sure I'll agree with you on that one and we can agree to disagree on the insider trading.

This is probably one of the reasons why mutual funds, ETFs, lag the theoretical performance of the indexes/assets they're trying to track. Insiders trade on illegal information which causes sub-optimal pricing when mutual funds and ETFs rebalance (forced buys/sells). Just imagine yourself...

It will be easy to move the market once insider trading is legalized. Market makers will be antsy about absorbing volume knowing that information could affect them adversely at any second so there'd be less price stability. The Raj Rajaratnams and SAC Capitals of the world would not need to...

I don't think the technical analysis signals would apply if insider trading were legalized. The "edge" you see in TA assumes that market participants are trading the way they do in the current market environment.. But if insider trading were legalized, I think you'd see more like an immediate...

If insider trading were legal, insiders would be the only people that could trade this market profitably. Note that if trading were a zero-sum game (stock market moving sideways, not up), any profit made by one party is coming out of someone else's pocket. Do you want to trade in a market where...

Thanks. This is the only post here that makes any sense. I can't fathom how insider trading can possibly help the small investor unless you're selling a TA system and want to spin an argument for your system.

Interesting thread. So where do I sign up for this hypothetical job? I already trade full-time anyway so having a base salary and more money to trade with, and someone footing the bills for subscription services are all pluses. I do have 3+years verifiable trading records (up about 450%)...

Yes. Here's a few examples: http://www.sec.gov/news/press/2010/2010-241.htm http://www.sec.gov/news/press/2010/2010-240.htm http://www.sec.gov/news/press/2010/2010-234.htm

I've done my own analysis using my entry price and the closing prices on subsequent days and believe I have a profitable discretionary strategy. As for sample size.. I do realize it's on the small side, but using my actual performance as well as "dumb" analysis using closing prices, there seems...

I think my rationale for entering the trade is good. However, I exit the trades in a discretionary manner right now. I'd like to compute the optimal hold-time or target percentage that would yield the most expected profit (assuming of course that the strategy I use is profitable). I have a...

Not sure if I'm describing it properly, but I am mainly a discretionary trader, but do look for certain technical setups as part of my decision-making process for entering a stock. I'm less decisive when it comes to exiting my positions. Is there software out there that will let me compute the...

This might not be applicable at all, but I don't really trade using a specific strategy. It's somewhat discretionary and I'm more comfortable with my entries, but am always questioning how optimal my hold times and exits are. Would you be able to take a series of trades that were made in the...