

TTAGG: Using Social Data to Beat the Market - tyrick
https://www.ttagg.com/?id=122

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obiterdictum
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.

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eric_bullington
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.

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joshtxt
Very interesting concept!!!

