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by spott
3873 days ago
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Information not in the market. Stock traders trade on rumor, fact and everything in between. They (can) look at who the company is run by, and how much they trust him, and look at the people in upper management. They can look at and understand news. Part of the difficulty of the stock market is that it isn't a closed system: people make decisions to sell stocks based on the fact that they are poor this month. Until computers can understand and process all the external data, people will need to be in the trading loop. The big exception to this is the trading the noise: high frequency traders trade against each other, closing the spread in bid/ask prices. However, they are essentially trading against other computers at that timescale, which makes them pretty amenable to algorithms. |
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Randolph Duke: Exactly why do you think the price of pork bellies is going to keep going down, William?
Billy Ray Valentine: Okay, pork belly prices have been dropping all morning, which means that everybody is waiting for it to hit rock bottom, so they can buy low. Which means that the people who own the pork belly contracts are saying, "Hey, we're losing all our damn money, and Christmas is around the corner, and I ain't gonna have no money to buy my son the G.I. Joe with the kung-fu grip! And my wife ain't gonna f... my wife ain't gonna make love to me if I got no money!" So they're panicking right now, they're screaming "SELL! SELL!" to get out before the price keeps dropping. They're panicking out there right now, I can feel it.
Randolph Duke: [on the ticker machine, the price keeps dropping] He's right, Mortimer! My God, look at it!