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Microsoft Corporation: How To Trade With Crowd Forecasting?

|Includes: Microsoft Corporation (MSFT)

To start with, we would like to explain what we do and why. Current analytics of future events, which is used by traders, investors, financial and political analysts, is derived from the same knowledge, insights, and experience of a reasonably limited number of specialists.

Our team works hard to make a new type of prediction market possible. We created our own financial, political and sports indicator - The Crowd Indicator (C.INDICATOR). It uses the principles of the scientific and math truism "The Wisdom of Crowds", which in 80% of cases allows us to get more accurate predictions from the diverse group of people than from individual experts and professional analysts. C.INDICATOR provides valuable, independent and accurate forecasts and signals for traders, analysts and individual investors connecting them to the collective wisdom of the crowd.

Every day our analysts add to the platform new questions about the most relevant global and local events that have a significant impact on the financial and political markets. As a part of our experiment, we decided to open a demo account and to trade using our indicator only. We do not want our readers to follow it blindly or to make trades using crowd indicator only. Our aim is to provide an additional signal to traders, investors, analysts and other people who are interested in financial, sport and political predictions.

Here is one of the questions from our app that was published on July 14: "Microsoft Corporation (NASDAQ:MSFT) is expected to report its FQ4 earnings on Tuesday, July 19 after market close. Wall Street is expecting earnings per share (NYSEARCA:EPS) of 58 cents. Will Microsoft report EPS above Wall Street Consensus?"

Our users had more than one hundred hours to make their prediction, and we were able to collect a solid number of votes. After voting closed, we got the crowd indicator: our users thought that it was 60% probability of Microsoft to report their Earnings per share better than analysts from Wall Street expected.

We took a trade, as there was a high probability of upward movement according to our indicator. We bought 1900 shares of Microsoft at $52.95 average before the market closed on Tuesday, July 19. Crowd indicator worked perfectly well: Microsoft reported better-than-expected earnings and we managed to sell 1500 shares at $55 average, locking $3,075 in profits in less than an hour.

We left 400 shares overnight with a stop loss at $54 as our analysts thought that MSFT would be trading higher next day. We sold 200 shares at 56.25 in pre-market trading and the last 200 shares at 56.62 in the late morning trading.

Overall, gross profit was more than 4% in less than 24 hours.

Isn't it something to consider about?

Happy trading,

Cindicator team.

Risk Disclosure. Everything we post is for educational use only. Futures, options, equity and currency trading involves the risk of loss. Any opinions, news, indicators or other information contained in our blog is provided as general market commentary and does not constitute investment advice or recommendation to buy or sell any type of security, futures contract, or foreign exchange contract.

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