# Smart technology to track Insiders



## RichKid (8 April 2005)

Saw this in the papers today: DocJ, might help you with your method of using chatroom activity to buy into stocks, can't find that thread of yours, post a link here to it if you do. I bet the technology costs a small fortune though.

Interesting to see all the behind the scenes surveillance, the ASX still gets it wrong or is slow to act.



> Stock exchanges get SMARTS
> By Rob O'Neill  SMH March 8, 2005
> 
> Japanese insider traders have nowhere to hide their stock manipulations following the installation of Australian technology to sniff them out at the Tokyo Commodities Exchange.
> ...


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## GreatPig (9 April 2005)

RichKid said:
			
		

> which analyses text such as stock chat-room entries, to correlate with market movements to see if anyone is talking-up stocks.



Rampers beware!


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## RichKid (10 April 2005)

RichKid said:
			
		

> Interesting to see all the behind the scenes surveillance, the ASX still gets it wrong or is slow to act.




Perhaps I should have mentioned ASIC too, let's hope this makes it easier to gather evidence to convict inside traders; might raise some privacy issues too.


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## doctorj (10 April 2005)

Interesting post RK.

It's interesting, because the forum tracking software would be rather arbitary and could be cross referenced with simple EOD data to identify any correlation in trends.

Unfortunately, as I've said elsewhere, it's very much a chicken-or-egg problem.  Stocks don't often get much air time on forums unless they're going through periods of high volatility.  Whether or not that's often a function of online rampers or people discussing it after the volatility increases is a question for the reader.

If anyone can prove me wrong by finding a mechanical way to trade the phenomenon, I'm all ears!


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