Web 2.0 for Day Traders
Inkling, one of the Institute's technology partners, just launched Worthio - an sort of prediction market meets social site for stock market speculators. The site lets you rate stocks quickly on whether you're bullish or bearish, and presents the aggregate group opinion. You can also add people to your network and watch what they think. There are also discussion around stocks.
Interesting twist - will the "wisdom of crowds" devolve into "herd mentality" on the trading room floor?
Search for more on http://www.web20searchengine.com ;)
Posted by: Image Generators | December 20, 2006 at 11:52 AM
Wow, a new way to frontrun! ;)
Seriously, I think markets are subject to vast amounts of herd mentality and traders struggle to sort through a signal to noise situation that has the unfortunate characteristic that noise can be so substantive that it can capitalize valueless enterprises long enough for them to buy OTHER companies that doe have value, thus backfilling and oddly substantiating the optimistic projections.
In that case, what is noise? At what point does mass hysteria become a valid signal (presumably before the banks fail or someone is crushed in a stampede for the exit doors)?
Posted by: Jessica Margolin | December 21, 2006 at 10:14 AM