You cannot get rich, on average, by buying and selling on public information.

Question

Quizplus · Accepted Answer

Trading on public information is legal and can be profitable on a few occasions, but it is not a sustainable strategy to get rich on average, as the market is highly efficient, and public information is quickly reflected in securities' prices. Therefore, traders need to have an information advantage, such as inside information or deep analysis of non-public information, to outperform the market. However, trading on inside information is illegal, and using private information obtained through unethical means can lead to reputation damage and legal penalties.

You Cannot Get Rich, on Average, by Buying and Selling