There are multiple ways. The most straightforward is luck. There’s high frequency trading. People like Carl Icahn make money by changing company policy. Quants have complex statistical models that sometimes pick up effects based on which they trade that are unknown to other market participants.
Some companies are likely illegally trading on insider information.
There are multiple ways. The most straightforward is luck. There’s high frequency trading. People like Carl Icahn make money by changing company policy. Quants have complex statistical models that sometimes pick up effects based on which they trade that are unknown to other market participants. Some companies are likely illegally trading on insider information.