A research paper on 1.6 million WSB comments shows WSB outperforms investment banks in sto
A research paper on 1.6 million WSB comments shows WSB outperforms investment banks in stock picking. The author agrees WSB is early on names like RKLB and HOOD but notes timing issues with options, and suggests X (Twitter) is now the best source of alpha.
“There was interesting research published called "Democratization of Retail Trading". That did a study on 1.6 Million $RDDT WSB comments. and found: 1. "WSB outperformed almost all investment banks at detecting top-performing stocks." 2. "Their average returns compete with the best investment banks and outperform them in certain cases." Their conclusion? "We conclude that WSB may indeed constitute a freely accessible, valuable source of investment advice." I do find WSB is really early to names like $RKLB, $HOOD, and others, but often get timing extremely wrong (with options). I think X is where all the alpha is at nowadays.”Original post：X / @aleabitoreddit ↗