Zusammenfassung der Ressource
Informed Traders
- Speculators who acquire and act on
information about fundamental values
- They don't make easy profits...
- Their trading influences others to trade
which may reduce prices (and profits)
- Sellers require higher prices from
informed traders (so profits decrease)
- Trades carry information about
prices to others
- Fundamental values
- The general equilibrium price given by all info =
fundamental value of an asset and noise
- Strategies
- Minimise price impact to maximise profit
- Aggressive trading
- Stealth (slow) trading
- Styles of informed trading
- Value traders
- Pyramid shaped organisations w/ variety of experts
- Economic models for estimation
- Large databases of info
- Ultimate liquidity suppliers
- News traders
- Flat organisational
structure
- Quick trades before
prices adjust
- Electronic news services
- Information-oriented
technical traders
- Identify recurring price patterns
- Econometric techniques for estimation
- Not profitable in efficient markets
- "Scavengers"
- Arbitrageurs
- Enforce the law of one price
when transaction costs permit
- Simultaneously buy and sell
similar instruments
- Announcements
- Earnings Reports
- Earnings per share
- Sales growth
- Future outlook**
- Most important indicator
- Affects prices the most
- ASX
- Takeovers/Mergers
- Shareholder details
- Company reports
- Notice of meetings
- Dividends
- Sensitive? Trading halt