One can predict the course of a comet more easily than one can predict the course of Citigroup’s stock. The attractiveness, of course, is that you can make more money successfully predicting a stock than you can a comet.
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We have three criteria. If it’s publicly traded, liquid and amenable to modeling, we trade it.
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We like a reasonable amount of volatility. In our business we want some action.
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Patterns of price movement are not random. However, they’re close enough to random so that getting some excess, some edge out of it, is not easy and not so obvious.
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