"Majority Opinion" System

Matthew, here’s a rough concept for a “system” that capitalizes on new psychological studies demonstrating that the opinion of a group is generally more correct than that of an individual.

There are a number of ways to look at this, but as an example, suppose that each Sunday night you posted a list of 10 equities with a poll system whereby registered users vote on the stock they think will perform best …and worst…over the next 5 days. Votes are ranked and one long and one short are selected for entry the next morning.

A quorum of X number traders would be required to vote before trades are initiated. Trades are tracked as with usual system, with the ability to subscribe to the results.

If the results are positive, and I would not be surprised if they were, it would be a great PR opportunity, as well as a profit opportunity for subscribers, as I don’t think anyone has put together a similar system/fund.

Hi David creative thinking for sure. I doubt it would work. I suspect 99% of traders loose money. Why would a collective opinion make them money makers? Wall Street is a hord of people following the followers. Few have any unique untried techniques that work. When you do get something new that works the hord sets in and follows the first person that followed. And then the method breaks down. The group then looks for something else to follow.

Still I would love to see what happens.

Totally agree. A system based on consensus opinion - now that’s something I would definitely contra-trade.

I do agree that it is probably 99% or more that fail. But the studies on the effectiveness of collective decision making are interesting, and from what I’ve read they are best when individuals are not influenced by the opinion of others. So with such a ‘trading system’, no chat threads would be permitted.

there are already sites that take the votes from their member. I tracked one awhile ago, and it performed randomly. The exact site escapes me, but it was not the only one.

If you want to push such an idea, it would be helpful if you posted significant proof or research, rather than add another random idea to Matthew’s heap.