Insider Information - Level playing field.

[ukdaytrader]

I pretty sure there is substantial insider trading going on.....it does not leave a level playing field.

Today for example before the consumer announcement in the US the markets started rising (after it had been down all day).

Im pretty sure people trade on the back of information that is not released to everyone at the same time.

Kind of p**** me off as it means that this just is not a level playing field at all.

These regulators are just s**t they catch no one. I bet there are people at the national statistics office trading on information and there are probably no regulatory compliance in place as well.

For information the S&P rose from 880 to 887 15minutes before the announcement. That means 7 less points for everyone else.

 

[TheBramble]

Erm...why did you imagine it would be a level playing field then?

 

[ukdaytrader]

Emh

 

[arabianights]

emh doesn't imply that it would be a level playing field.

Anyway an efficient marketeer should support insider trading. It makes markets more efficient

 

[WallStreetHero]

wat, so you just found that out today.
well done

 

[TheBramble]

Emh

EMH? Don’t make me laugh!

Typical investor rationality, or their lake thereof effectively cancelling each other out, and the theoretical (and it is only theoretical) ability of professional arbitrage to quickly close any gaps have nothing whatsoever to do with the various strata of informed market participants and their ability and facility to utilise that information at the various times it becomes available to them to establish an edge over those at lower levels in the information strata.

Get used to it.

 

[TheBramble]

Anyway an efficient marketeer should support insider trading. It makes markets more efficient

That’s not just curiously logical, it has a certain ineffable ‘reality’ to it….LOL

 

[Shakone]

There is and always has been insider trading, right? But it should be in the charts, and you say it was. I suppose it is not easy to judge that it was insider trading and not just a retracement. But I don't think you can complain about it not being a level field. The idea is to become proficient enough in your trading, so that the field is not level, but tipped in your favour, due to your skills in technical or fundamental analysis.

 

[ukdaytrader]

I knew it was there I was just p**sed off as I came out of the contracts a few hours before the announcement as I wasn't trying to predict what was going to happen and that was at quite a large loss.

I did go back in later but haven't yet re-copued the losses yet.

Its pretty nasty and its so common, the regulators are truly toothless tigers with a few high profile cases to try and show the public that they do something about it. When in fact they don't have a clue. Today for example that S&P rose simply cause a few people had more information than everyone else.

Even the guy typing the information in for Reuters could probably make money on the information give it may take 5 / 10 seconds between when he inputs it and before it reaches the rest of the lemmings who may act on it.

 

[rathcoole_exile]

completely spurious.

assuming the people NOT "in the know" choose one trade direction and remainder choose the other direction, you'd have a 50-50 chance of being correct.

If you keep taking 50-50 "guesses" but apply strict money management that limits your losses and allows you to garner your winnings, you'd be profitable

news, imho, is as useless as as any other "indicator"

 

[TheBramble]

Don't you think you're in danger of taking all this a little personally - it isn't you know.

Instead of pointlessly fuming, why not build a more robust strategy to take future announcements and such like into account?

 

[TheBramble]

news, imho, is as useless as as any other "indicator"

Much worse in my book.

News gives the impresison of being not only 'about' something, but also has an implication of 'better/worse' which is as often at odds to the resulting price action as 'accounts' for it.

It has the the delightful combination of randomness and increased volatility - which is perfect from some strategies - and quite lethal to vanilla directional plays. \even if they don't kill you, they'll take a chunk out....

 

[Lord Flasheart]

Even if you had the news in advance would you know for sure which way the market would go.What starts as good news often turns out to be bad.Particularly with currencies this is often the case. If a figure is much better than expected it does not mean a market will go in a certain direction.The good news will have an adverse affect on something else causing a different reaction a few moments later. But yes it does **** you of when you know there is so much insider info about. I had some given to me a while ago that was truely genuine and it worked out really well. I still managed the trade in a **** poor way so only made a third of what i should have. Its only happened to me once in 9 years.ill probably break even on the next one in nine years time.

 

[rathcoole_exile]

imho

sorry, I lied earlier, and my conscience (if i had one) would make me want to come clean:

my Opinion is never "humble "

 

[ukdaytrader]

I think news is really important as it gives the overall feel for the market, irrespective of fundamentals. It also causes huge movements and shifts. I try and avoid trading pre-news announcements as it really does become 50/50.

But post news announcements - well that is another story - see my news trading journal.

 

[Black Swan]

just as fascinating is how the supposed increased consumer confidence (best since 2003 apparently ) can lead to such a 'leg up' on the Dow. Who did they ask, 5 year old kids getting their Santa list in early?

 

[Black Swan]

I knew it was there I was just p**sed off as I came out of the contracts a few hours before the announcement as I wasn't trying to predict what was going to happen and that was at quite a large loss.

I did go back in later but haven't yet re-copued the losses yet.

Its pretty nasty and its so common, the regulators are truly toothless tigers with a few high profile cases to try and show the public that they do something about it. When in fact they don't have a clue. Today for example that S&P rose simply cause a few people had more information than everyone else.

Even the guy typing the information in for Reuters could probably make money on the information give it may take 5 / 10 seconds between when he inputs it and before it reaches the rest of the lemmings who may act on it.

wtf are you bleating about? Wall st daily began to turn at 2:30 on the 15 minute chart, by 2:45 all signals were 'go', by 3 o'clock all systems were screaming go, in fact you couldn't have found a better set up all day. Jeez there's some prize fooking teds on this forum...

 

[ukdaytrader]

The problem is you can't go against market sentiment. Even if you thought this was all rubbish you would have got hammered today.

Its better to go with the flow and let it sort itself out the next day / week / month / year once all the excitement is over.

No different to the housing market, we've been looking to move up for 4 years, waiting for the correction ! You knew it was going to happen, but could not predict the timing or severity.

 

[ukdaytrader]

wtf are you bleating about? Wall st daily began to turn at 2:30 on the 15 minute chart, by 2:45 all signals were 'go', by 3 o'clock all systems were screaming go, in fact you couldn't have found a better set up all day. Jeez there's some prize fooking teds on this forum...

I was out of my S&P around 11.00a.m (before wall street even opened) S&P then was trading at 880. It as around 11 points down, together with the FTSE / DAX etc. I was not about to hold on and get pasted again after an bad / unknown announcement, which was coming in a few hours after Wall St opened.

 

[ukdaytrader]

wtf are you bleating about? Wall st daily began to turn at 2:30 on the 15 minute chart, by 2:45 all signals were 'go', by 3 o'clock all systems were screaming go, in fact you couldn't have found a better set up all day. Jeez there's some prize fooking teds on this forum...

For info, I did catch the upside on the way back up. But it did not turn till much later.