Variables that affect the price of securities in secondary markets are things like proposed mergers, reports like 10-k, 10-q, 8-q, pending lawsuits, sale of assets, etc. The first people to learn about these things are institutional investors in the network/feedback loop of the financial world. They take advantage of the arbitrage opportunity, and by the time you learn about these variables the opportunity is gone, because the information has been integrated into the share price.
In other words, any excess profits you reap from day trading are based on pure luck. That luck will run out. That is why I was advising you to invest your capital in something like RE, which you suggested, where the inputs to the DCF model are reliable and based on inside information you might have access to. Better plan than just blindly ride a wave that will crash.
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12-11-2012, 05:06 PM
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