Reply to post: Here's your basic free stock market lesson.

'Big data' predicts stock movements, boffins claim

Anonymous Coward
Anonymous Coward

Here's your basic free stock market lesson.

The moment anyone develops any means of predicting market changes, the market itself changes as a result of that development. Either because everyone starts using the method or because their predictability makes players stay away from that market. Or both.

Even if the development is kept secret the market also changes because there is now a consistently winning player. which makes other players go elsewhere with their money where the perceived chance to win is higher.

Somehow one thinks that these stat bods should benefit a lot from a bit of game theory before embarking on their epic efforts.

Anyway, here's my free stock market tip: stocks will rise and then go down. The difficult part is knowing by how much and when, but that's something nobody really knows.

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