Lumifer comments on Open Thread, Jul. 6 - Jul. 12, 2015 - Less Wrong Discussion
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That's not really true. You need to make correct predictions many times on many different things to get significant returns from your initial seed investment. There are also a lot of details like finding someone to take your short, and getting it at just the right time before the market crashes.
There also is such a methodology to make really good predictions. Train a bunch of people through practice to be good at forecasting the future and learn from their mistakes, and take the top performers from that group: http://www.economist.com/news/21589145-how-sort-best-rest-whos-good-forecasts
They even beat CIA analysts: http://www.npr.org/sections/parallels/2014/04/02/297839429/-so-you-think-youre-smarter-than-a-cia-agent
There is also this guy. I remember him from the book Automate This, that he was supposedly able to predict exactly how Iran would act back when they were developing nuclear weapons. His method, as best I understand it, is to simply list everyone involved that has influence, and predict they will do exactly what benefits them individually the most.
That is not true and entirely depends on what your investment is. For example, in late 2012 in a move that was heavily telegraphed yen dropped from about 80 yen/dollar to about 100 yen/dollar. That's a 20% return over a few months and given that FX trades are heavily leveraged (typically at 50:1 or so) you could have made multiples of your initial investment.