Can internet gossip = stock market success ?
December 29, 2004 8:28 AM Subscribe
Anyone successfully used internet rumors/information to make money in the stock market?
Response by poster: The latter. It seems like less work.
posted by smackfu at 8:59 AM on December 29, 2004
posted by smackfu at 8:59 AM on December 29, 2004
Also, since the former is illegal, the latter is a better idea by default. I would never bet any money, ever, on anything I read solely on the Internet. Ever. Not in a krillion years.
posted by Plutor at 9:17 AM on December 29, 2004
posted by Plutor at 9:17 AM on December 29, 2004
The former can also get you in jail.
posted by five fresh fish at 9:20 AM on December 29, 2004
posted by five fresh fish at 9:20 AM on December 29, 2004
Yes, the former is illegal, but unfortunately it happens all the time in one form or another - thus making the latter very, very, very, very risky.
Most of the stock-related info you read on the web is provided by people with a vested interest in convincing you to buy (or, in some cases, sell) a stock. And most of them are taking advantage of the fact that, yes, it seems like less work to buy a stock because somebody said it was going to take off, rather than doing the research necessary to determine whether its a good buy or not.
Every once in a while, someone may get lucky and strike gold on a stock tip that they got from a random source, but that does not mean that this is common or predictable. Someone always wins the lottery, but for every winner there are thousands of losers.
Caveat emptor.
posted by googly at 9:30 AM on December 29, 2004
Most of the stock-related info you read on the web is provided by people with a vested interest in convincing you to buy (or, in some cases, sell) a stock. And most of them are taking advantage of the fact that, yes, it seems like less work to buy a stock because somebody said it was going to take off, rather than doing the research necessary to determine whether its a good buy or not.
Every once in a while, someone may get lucky and strike gold on a stock tip that they got from a random source, but that does not mean that this is common or predictable. Someone always wins the lottery, but for every winner there are thousands of losers.
Caveat emptor.
posted by googly at 9:30 AM on December 29, 2004
Don't do it. It's wrong. and unlikely to be successful.
posted by theora55 at 9:36 AM on December 29, 2004
posted by theora55 at 9:36 AM on December 29, 2004
I learnt about two stocks in the last few years off of message boards ("Raging Bull" which I believe was scooped up by Lycos). One of them was Irvine Sensors (IRSN), which I bought at 4 solely due to positive internet chatter (sold at 16 after a few months). Another was Biolase Technologies (BLTI), makers of water lasers for dental use. I picked up some shares at 4, it went as high as 21, back down to 7 and now back around 11. Neither company would have ever entered my consciousness without message boards.
posted by vito90 at 9:44 AM on December 29, 2004
posted by vito90 at 9:44 AM on December 29, 2004
There was a kid in Jersey who signed onto the boards at Yahoo finance and some other sites and would write five to six entries about how fantastic his stock was. He made five hundred thousand and was forced to return half of it.
I don't believe this is illegal if you do not lie. In other words, you are allowed to say:
"This stock is UNBELIEVABLE! I cannot believe what a GREAT VALUE this stock is. This place has chains throughout the country and seems DESTINED TO EXPAND. This is a STEAL!"
and all the other junk words you read on a television ad. The kid said that without manipulation there wouldn't be a stock market, and that every time someone even mentions a stock it's a form of manipulation. He was 15 at the time. I
forget his name, but there's a book that includes a story about him. If you google around I'm sure you can find more. Here's one Link
posted by xammerboy at 9:58 AM on December 29, 2004
I don't believe this is illegal if you do not lie. In other words, you are allowed to say:
"This stock is UNBELIEVABLE! I cannot believe what a GREAT VALUE this stock is. This place has chains throughout the country and seems DESTINED TO EXPAND. This is a STEAL!"
and all the other junk words you read on a television ad. The kid said that without manipulation there wouldn't be a stock market, and that every time someone even mentions a stock it's a form of manipulation. He was 15 at the time. I
forget his name, but there's a book that includes a story about him. If you google around I'm sure you can find more. Here's one Link
posted by xammerboy at 9:58 AM on December 29, 2004
Yes. My private company does stuff for other companies that are public. The more work we are asked to do is usually directly proportional to the success of the company hiring us, and a soon to increase share price.
It's like free money.
posted by orange clock at 11:06 AM on December 29, 2004
It's like free money.
posted by orange clock at 11:06 AM on December 29, 2004
Oh, but that's more insider knowledge, I guess. I would never use the internet for finance tips. I don't even trust my broker.
posted by orange clock at 11:07 AM on December 29, 2004
posted by orange clock at 11:07 AM on December 29, 2004
I take this question to mean something different than the answers thus far. I think that smackfu is asking about using domain specific news-rumor-info sites (like Engadget, Think Secret, and maybe also FuckedCompany) to decide on when to buy and sell certain stocks.
I do this. I can't say it's statistically better than not reading these sources, but it does help me better to get a sense of what's coming down the pike. If you can be pretty sure that a certain hot new phone is going to come out on one provider long before it appears on another, why wouldn't this be appropriate information to add to the mix when considering a buy.
I never check "technicals" or stock trading discussion websites.
posted by zpousman at 11:20 AM on December 29, 2004
I do this. I can't say it's statistically better than not reading these sources, but it does help me better to get a sense of what's coming down the pike. If you can be pretty sure that a certain hot new phone is going to come out on one provider long before it appears on another, why wouldn't this be appropriate information to add to the mix when considering a buy.
I never check "technicals" or stock trading discussion websites.
posted by zpousman at 11:20 AM on December 29, 2004
Buy on the rumor, sell on the news.
Note: This is not advice. I am not recommending any course of action. I am a 14 year-old kid, on the internet nobody knows you'r a dog, etc., etc.
posted by zpousman at 11:26 AM on December 29, 2004
Note: This is not advice. I am not recommending any course of action. I am a 14 year-old kid, on the internet nobody knows you'r a dog, etc., etc.
posted by zpousman at 11:26 AM on December 29, 2004
You're might want to read "Dumb Money : Adventures of a Day Trader" ("No strategy is too crackpot to try, no news break too dubious to play off, no so-called guru too shady, no online chat room too pathetic.")
posted by WestCoaster at 11:49 AM on December 29, 2004
posted by WestCoaster at 11:49 AM on December 29, 2004
Response by poster: Zpousman was spot-on with the rumor that triggered this question. Although that rumor now shows up as news when you look on Yahoo at AAPL, so I suppose it isn't very secret.
posted by smackfu at 1:02 PM on December 29, 2004
posted by smackfu at 1:02 PM on December 29, 2004
« Older What champagne should I buy for under $100? | What's with the ubiquity of Scarface posters? Newer »
This thread is closed to new comments.
posted by googly at 8:50 AM on December 29, 2004