administrator Site Admin
Joined: 28 Dec 2005 Posts: 12651
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Posted: Thu May 26, 2011 11:18 pm Post subject: Insider Trading-Speculation Coffee Market |
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PeakTrader said...
Why not give the answers to your tests only to the most privileged students and then grade on a curve with a "C" average?
Or in the unrealistic situation where everyone has equal access to insider information, you could give everyone a "C," or make grades dependent on how fast they cheat.
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Methinks said...
Peak Trader,
What you describe is in no way analogous to insider trading.
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PeakTrader said...
Methinks, you need to Methinks more.
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Bernie Ecch said...
Instead of trying to ban it, make them disclose what they have so we can duplicate their performance.
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Methinks said...
"Methinks, you need to Methinks more."
Entirely possible that I do (although, if I may suggest, leaving off the second "me" would have read better).
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Methinks said...
No, Peak. I still don't see how your scenario is analogous. Could you explain?
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PeakTrader said...
Methinks, the stock market is a zero sum game.
If the market rises 10% (after insider information is generally known, which is inevitable) and an insider trader makes 100%, then everyone else averages less than 10%.
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Methinks said...
Peak,
Individual trades are zero-sum (and not only in the stock market). The stock market and trading in general is not zero-sum. I think this is the root of your mistake.
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Bobby Caygeon said...
Methinks it might be in the best interest of methinks to let this one go.
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PeakTrader said...
Methinks, are you saying when someone makes an above average return, then everyone else, on average, makes an average return?
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Methinks said...
No, Peak, that's not what I'm saying.
Right now what I'm saying is that I think Bobby Caygeon has just given me some good advice.
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PeakTrader said...
Normally, speculation plays an important role by keeping future supply and demand in equilibrium by making price changes today based on perfect information (for example, when speculation drives up prices, demand falls and supply rises).
I agree, the coffee market should be investigated, rather than the oil market, because it seems more likely there is more illegal manipulation in the coffee market. |
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