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Technical analysis of stocks question

Posted on 3/17/24 at 8:22 am
Posted by Geekboy
Member since Jan 2004
4926 posts
Posted on 3/17/24 at 8:22 am
Let’s say for the sake of argument that you came up with a formula that predicted the movement of stocks and as a result you made over a 50% return on all your stock investments. Would not the SEC accuse you of insider trading and shut you down plus probably arrest you?

Suppose you showed them and proved to them your formula worked and was legit. What would they do? Shut you down? Have you killed?

Is getting into technical stock analysis a waste of time?
Posted by Long Ball Larry
Baton Rouge
Member since Apr 2021
1383 posts
Posted on 3/17/24 at 8:25 am to
They would make a movie and cast Leonardo as you.
Posted by Corinthians420
Iowa
Member since Jun 2022
6452 posts
Posted on 3/17/24 at 8:25 am to
You would get clinton'd

AI would be ahead of you anyway tho
Posted by athenslife101
Member since Feb 2013
18553 posts
Posted on 3/17/24 at 8:25 am to
That’s not how any of this works. I don’t think you know what insider trading is
Posted by Bullfrog
Institutionalized but Unevaluated
Member since Jul 2010
56188 posts
Posted on 3/17/24 at 8:25 am to
All technical analysis works some of the time. It is a fun rabbit trail. Also once something gets “out”, it loses its effectiveness. Like everyone watching the Fibonacci retracements for example.

If it works, you tell no one except maybe family that will keep quiet and continue to build wealth.
This post was edited on 3/17/24 at 8:27 am
Posted by athenslife101
Member since Feb 2013
18553 posts
Posted on 3/17/24 at 8:31 am to
Companies that operate on a stock exchange and are public.They have to release public statements on their financial health. They may open themselves up in other ways to public review to other financial institutions. All of which is common public knowledge.

You get in trouble when you use non-public information into the formula and there are a lot of controls around that.

In financial services, it’s called the barrier. Either you can be on the public side of the barrier that only knows what’s publicly available and that’s where your traders and analysts sit. Or you can be on the private side which knows private information due to providing financial services but is completely banned from communicating with the public side of the barrier .

If people were curious how that works
This post was edited on 3/17/24 at 8:32 am
Posted by Dadren
Jawja
Member since Dec 2023
935 posts
Posted on 3/17/24 at 9:12 am to
quote:

Let’s say for the sake of argument that you came up with a formula that predicted the movement of stocks and as a result you made over a 50% return on all your stock investments. Would not the SEC accuse you of insider trading and shut you down plus probably arrest you?

Unless your method consists of using non-public information, there’d be no grounds to charge you with insider trading.

There’s also no chance you’re consistently getting those kinds of returns without using non-public information.
Posted by Blutarsky
112th Congress
Member since Jan 2004
9564 posts
Posted on 3/17/24 at 9:14 am to
Insider trading is using prior knowledge of stock news (both positive and negative) to place trades prior to it being released and reaping the rewards.
This post was edited on 3/17/24 at 10:32 am
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
51489 posts
Posted on 3/17/24 at 9:20 am to
Just get elected to Congress and you won't have to worry about it.
Posted by lostinbr
Baton Rouge, LA
Member since Oct 2017
9298 posts
Posted on 3/17/24 at 9:35 am to
quote:

Is getting into technical stock analysis a waste of time?

Are you talking about quant trading?
Posted by TDTOM
Member since Jan 2021
14344 posts
Posted on 3/17/24 at 9:39 am to
Google insider trading.
Posted by BabyTac
Austin, TX
Member since Jun 2008
12073 posts
Posted on 3/17/24 at 9:42 am to
I’m sure you’re onto something here. Nobody has ever thought of doing that.
Posted by Butch Baum
Member since Oct 2007
2823 posts
Posted on 3/17/24 at 9:50 am to
…Now tell me about congress
Posted by tylerlsu2008
London
Member since Jul 2015
1084 posts
Posted on 3/17/24 at 9:51 am to
No, Renaissance Technologies has been doing it for decades, they’ve done so well so consistently, that I think the charge 3/30 on outside money.

Over the long term, fundamentals win, but in the modern market, a lot of short term movements can be attributed to technical factors.

quote:

Is getting into technical stock analysis a waste of time?


For you, yes
This post was edited on 3/17/24 at 9:53 am
Posted by Zzyzx
Member since Nov 2018
1873 posts
Posted on 3/17/24 at 9:57 am to
This is the correct answer.

You’d be Jim Simons and start the Medallion Fund.

This has already been done, and he’s the best to ever do it.

They AVERAGE 66% return per year.

Posted by KamaCausey_LSU
Member since Apr 2013
14483 posts
Posted on 3/17/24 at 10:18 am to
quote:

Technical analysis of stocks question

You'd still be behind the algorithms that can make near instant trades.
Posted by No Colors
Sandbar
Member since Sep 2010
10344 posts
Posted on 3/17/24 at 10:37 am to
The brightest mathematical and quant theory minds in the world are spending literally millions of dollars a day using advanced AI algorithms to stay just a few seconds ahead of the other guys
doing the same thing in this game.

There is a zero point zero percent chance that you can outmanuever them with a quant strategy of your own
Posted by athenslife101
Member since Feb 2013
18553 posts
Posted on 3/17/24 at 12:11 pm to
Also though, the thing is reading the market also requires understanding potential other buyers. One of the most important investment groups are retirement funds and retirement funds have their hands forced to react to markets in very specific ways for example.
Posted by JohnnyKilroy
Cajun Navy Vice Admiral
Member since Oct 2012
35289 posts
Posted on 3/17/24 at 12:14 pm to
quote:

Let’s say for the sake of argument that you came up with a formula that predicted the movement of stocks and as a result you made over a 50% return on all your stock investments. Would not the SEC accuse you of insider trading and shut you down plus probably arrest you? Suppose you showed them and proved to them your formula worked and was legit. What would they do? Shut you down? Have you killed?


Gonna be straight up with you, you sound retarded.
Posted by LSUAngelHere1
Watson
Member since Jan 2018
8120 posts
Posted on 3/17/24 at 12:20 pm to
I make 100% all the way up to 4000% on many options. I just take small positions bc I don’t have insider knowledge.

3 weeks ago I bought a SMCI call for .52 ($52) and sold it the same week for $10.45 ($10450.00). Wish I had bought 100 of those calls.
This post was edited on 3/17/24 at 12:26 pm
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