Find some random company with a major product approval coming up
make bots to scan their website/twitter constantly
have the bots notify you whenever the website updates. Maybe even look for the code word "approval" or "FDA" or w/e
immediately dump money into that stock when their product gets approved, and ride the +25% wave
This literally happened to some no-name company back in 2020 when I was actually looking at stocks. Obviously now it'd be harder to do since everything is collapsing, but is there a reason this wouldn't have worked before 2022?
Imagine that, but for all news, every company, and most importantly all retail trading data, automatically making trades every millisecond to ride the +0.00000025% waves 24/7/365. Great now you know what high frequency trading is and why Blackrock is like the largest company on the planet.
To go even further, for those who don't know: it's 100% legal to act on information that is TECHNICALLY public.
Even if that information was released immediately before you bought / sold.
How this works for the in-group:
Do insider trading
Know that an earnings report goes live at noon or whatever
Wait for one femtosecond after noon
Do the trading you already decided on days / weeks ago
A scanning bot could totally work for some things, but you're still way behind the curve, because they made fraud legal.
The real trades are already made while your bot is downloading the PDF.
Biotech is extremely volatile. The FDA approval process is long and arduous. Plus approval doesn't automatically mean line go up. If your exit is poorly timed, you'll end up losing all your gains.
Palantir is a good example of a company that gets nothing but good news yet the price gets lower and lower. It's not biotech, but it's the same idea. They get government contracts, price goes down. They expand their private contracts, price goes down. They have good earnings, price goes down. The entire market goes down, they go up a little bit.
Stonks aren't as simple as good news = line goes up and bad news = line goes down. It's forward-looking but how much forward and what specific future moment is up for grabs. The news you get today has already been digested and priced-in. The current prices is based on news that hasn't come out yet.
Can someone tell me why this wouldn't work?
This literally happened to some no-name company back in 2020 when I was actually looking at stocks. Obviously now it'd be harder to do since everything is collapsing, but is there a reason this wouldn't have worked before 2022?
Imagine that, but for all news, every company, and most importantly all retail trading data, automatically making trades every millisecond to ride the +0.00000025% waves 24/7/365. Great now you know what high frequency trading is and why Blackrock is like the largest company on the planet.
To go even further, for those who don't know: it's 100% legal to act on information that is TECHNICALLY public. Even if that information was released immediately before you bought / sold.
How this works for the in-group:
A scanning bot could totally work for some things, but you're still way behind the curve, because they made fraud legal.
The real trades are already made while your bot is downloading the PDF.
Having a functioning bot to let you know when to legally commit insider trading is like parallel construction for fintechbros :big-cool:
Biotech is extremely volatile. The FDA approval process is long and arduous. Plus approval doesn't automatically mean line go up. If your exit is poorly timed, you'll end up losing all your gains.
Palantir is a good example of a company that gets nothing but good news yet the price gets lower and lower. It's not biotech, but it's the same idea. They get government contracts, price goes down. They expand their private contracts, price goes down. They have good earnings, price goes down. The entire market goes down, they go up a little bit.
Stonks aren't as simple as good news = line goes up and bad news = line goes down. It's forward-looking but how much forward and what specific future moment is up for grabs. The news you get today has already been digested and priced-in. The current prices is based on news that hasn't come out yet.