ASIA Access (access markets others cannot or don't want to) Speed (being first in the trade) Information (having better information than anybody else) Analytics (digesting information better than anybody else)
Steve Cohen was trading based on insider news. That's the kind of edge anyone would need to make some serious money.
They all do it. Remember, hedge fund managers have contacts with CEOs of top companies. What if they send over an analyst of the hedge fund and say, go over to Tim Scott of Apple. Tell him I sent you. Ask him what he thinks Apple's next quarterly earnings will be like? Tim Scott tells the analyst that he thinks Apple should have blockbuster sales in the coming quarter. Is that insider information, no it is not. Tim Scott was giving an opinion. Contrast it with this scenario, 2 days before earnings release, Tim Scott talks to Steven Cohen over the phone. He tells Steve Cohen that Apple is going to report blockbuster earnings when it is released. Steven Cohen buys a huge block of Apple shares because of it. Now, that is insider trading. You have to look at the context of when and how the information is given. Take the US Congress, Nancy Pelosi said she is doing nothing wrong when she buys stocks in companies with business before her committees. Is that insider trading? Of course it is but, she and members of Congress get a pass. See the hypocrisy and double standard? "Do as I say, not as I do." Steve Cohen is right to say, there is a lot of gray areas because there is. Members of Congress are not even punished for insider trading.
Hello Sekiyo, Yes, correct that was a very good documentary. Yes, now that is an edge that works guaranteed. Steve was able to be a billionaire this way. Now that is an Edge.
Hello smallfil, Thanks for explaining to me. WOW, I am very impressed by the insider trading. I did not know this exist. So, this how the millions is made and the real serious Edge. Very interesting indeed. They are very lucky to get rich this way.
Interesting you said that about entries vs exits, I take a very similar approach. I tend to spend more time and also allocate more resources to improve my edge on entries rather than exits. Especially when developing trading algorithms. And I tend to start with a relatively naive exit logic and then work on optimizing entries. That is where most of my time is spent.
4400 posts and you did not know insider trading exits? Did you post in the religion forum until now or what?