On January 7, 2025, at 11:00:56 PM Singapore time, I placed an order for TMF (Direxion Daily 20+ Year Treasury Bull 3X Shares), a leveraged ETF that seeks to amplify daily returns on long-term US Treasury bonds. My order was filled shortly after placing it. However, I made a critical oversight by not considering the timing of important US economic data releases scheduled for that day. This mistake had a significant impact on the value of my investment shortly after the trade. Impact of Economic Data Releases Unbeknownst to me at the time, two key economic reports were released shortly after my order was executed: ISM Services Index: The ISM Services Index came in at 54.1%, higher than the market's expectations. This reading indicated that the US services sector, a major component of the ec
Do You Think Information Asymmetry Matters in Stock Trading?
Last year, stocks held by Democratic lawmakers rose by 31%, those held by Republican lawmakers rose by 26%, while the S&P 500 index rose by 24.9%. However, Duan Yongping, often referred to as the "Warren Buffett of China," stated in a speech last week that information asymmetry has little impact on stock trading. He argued that investing is not a zero-sum game, whereas exploiting information asymmetry is essentially a zero-sum game. ------------------ What do you think? Is information asymmetry important in stock trading? What do you believe is the most crucial factor in investing?
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