> 72 of them, or 75%, have shown a profit three months later.
That is surprisingly close to the number Matt Levine reported on some time ago. A group was trading almost exclusively on insider information, and (IIRC) 77% of their trades made a profit. It's a massive edge over other market participants, but only goes to show that even with that kind of information at your disposal, you are still not guaranteed to make money on every trade.
I wish I could find the article. The overlap between "Matt Levine article" and "insider trading" sets is large enough to make any search for a particular piece of news a needle/haystack problem.
EDIT: to clarify - when you are trading on inside information with the goal of making a quick buck, you are not interested in how the company will do in short term. You are trying to predict how the market in aggregate will react to that same information, once it becomes public.
That is surprisingly close to the number Matt Levine reported on some time ago. A group was trading almost exclusively on insider information, and (IIRC) 77% of their trades made a profit. It's a massive edge over other market participants, but only goes to show that even with that kind of information at your disposal, you are still not guaranteed to make money on every trade.
I wish I could find the article. The overlap between "Matt Levine article" and "insider trading" sets is large enough to make any search for a particular piece of news a needle/haystack problem.
EDIT: to clarify - when you are trading on inside information with the goal of making a quick buck, you are not interested in how the company will do in short term. You are trying to predict how the market in aggregate will react to that same information, once it becomes public.