ST Alpha - "The biggest flaw I've seen so far..." (Reading a Post)

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In response to "The Cantor Exchange beta didn't have The Hangover on its market. -- nm" by Inigo

The biggest flaw I've seen so far...

Posted by David (aka David) Jun 6 '09, 11:41

is how easy it is to reverse a bad position. I was drinking the Terminator Salvation kool-aid and had bought like 8 shares of it. The moment I saw its Friday number (not even the Thursday number), I tried to switch. To my shock and surprise, I got out easily and wound up making about $360 the other way. That shouldn't be possible.

Responses:

but really that just shows that it's an inefficient market - mafic Jun 6, 12:18
Everything I ever heard about it seemed to be about making money from other people's ignorance. -- nm - mara Jun 6, 11:54 5
- Generally speaking, in gambling, those sorts of arbitrage advantages disappear quickly. - David Jun 6, 11:58 4
  - and generally speaking that's really what any stock market is when you boil it down. -- nm - mafic Jun 6, 12:19 2
    - An HSX-type exchange has *many* more sure things than an actual stock market. That's why the original HSX instituted the halt in the first place. -- nm - mara Jun 6, 12:22 1
      - I'd argue that HSX instituted the halt is because it gave them better data to sell. they want a general public opinion on the movie, and the easiest - mafic Jun 6, 12:34
  - But at least it's completely in the rules--even expected--to profit from others' ignorance. -- nm - nubby Jun 6, 12:04

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The biggest flaw I've seen so far...

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