To Beat The Stock Market

I've known this for a while, but to consistently beat the market, you need a fundamental understanding of how trading algorithms work and what parameters hedge funds use to predict trades successfully. Human psychology plays a role too. Reading graphs doesn't do much on its own; but if you can crack how these bots decide whether to buy or sell a position, you can make a hefty profit.

I haven't reached that point yet myself. I'm still not entirely sure how bots determine when to buy or sell, but I believe a lot of it comes from earnings reports and news sources. I don't think they rely on AI alone, because AI is too slow to react to something as volatile as the market. They obviously look at EPS and the percentage by which a company beats its earnings.

I have a big theory that these bots work with some news sites to publish specific keywords, so the bots can recognize whether to buy or sell. One thing I've learned is that everything is connected.