TTAGG: Using Social Data to Beat the Market

https://www.ttagg.com/?id=122

by tyrick • 14 years ago

9 4 14 years ago

The trouble with services like this is that in order to "beat the market", i.e. be above average, you have to have information before other market participants. As soon as information becomes public, you can no longer make "more than average" returns with it, because everyone would be trading off it.

This usually means that if the information is any good for profitable trading, it will be quietly used to make a profit and won't be shared with general public.

tyrick• 14 years ago

We're limiting the release for now, though I wouldn't expect to see anything like that pre-scale.

eric_bullington• 14 years ago

Or maybe the information is out there, in plain sight, and no one has yet figured out how to correctly use it. I'm not saying this company has deciphered social media for investing, but it's theoretically possible that mining social media could reveal certain patterns that would be of use in financial markets -- the more sophisticated private equity firms are already using such methods.

joshtxt• 14 years ago

Very interesting concept!!!

TTAGG: Using Social Data to Beat the Market

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