The battle: an efficient market and a TS with a positive maturity expectation. Who will win? - page 2
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The market can only exist normally if the inflow of funds exceeds the outflow, otherwise collapse and the end.
And the market is a parasite in essence - it produces nothing but redistributes and feeds itself (obtains the means to exist and develop) by taking away some of the funds that pass through it.
Read something about the role of financial markets in the global economy.
The market can only exist normally if the inflow of funds exceeds the outflow, otherwise collapse and the end.
And the market is a parasite in essence - it produces nothing, but redistributes and feeds itself (gets the means to exist and develop) by taking away some of the funds that pass through it.
Again, militant ignorance.
Read something about the role of financial markets in the global economy.
What's the point of the role of markets? It is the bottom line that counts. The market is a gigantic system that tends to redistribute funds as much as possible from one object to another, but in general the money will go to whoever has the most money.
For those interested, the literature on the theory of efficient markets:
1. Fama E.F. Efficient Capital Markets. II//Journ. Finance. 1991. Dec. P. 1575-1617.
2. Fama E.F. Efficient Capital Markets: A Review of Theory and Empirical Work/Journ. 1970. May. P. 383-417.
3. Galai D. Tests of Market Efficiency of the Chicago Board Options Ex-change//Journ. Business. 1977. Apr. P. 167-19.
4. Grossman S.J., Stiglitz J.E. On the Impossibility of Informationally Efficient Market/Amer. Econ. Rev. 1980. June. P. 393-408.
I can recommend J. Brigham and L. Gapenski's book "Financial Management" and M. I. Lisitsa's monographs "Required Returns and Capital Structure" or J. A. Sokolov and M. I. Lisitsa's "Methodology of Securities Yield and Capital Structure".
The market can only exist normally if the inflow of funds exceeds the outflow, otherwise collapse and the end.
The market is a parasite in essence - it does not produce anything, but redistributes and feeds itself (obtains the means to survive and develop) by taking away some of the money that passes through it.
Why try to outperform the market? Because it can be done all the time, and in the long term, it can outperform the market by a significant amount. Just look at how much money mutual funds spend on advertising: Not surprisingly, the basic idea that "financial professionals" are trying to get across to the masses is the idea of the individual investor as a helpless puppy and something of an anachronism in general. Only a very confident investor today would dare to storm the financial markets alone and resist the decreasing number of associates, the pressure of mutual funds and occasional attacks from the media. The challenge for such an investor is to invest their own money, make their own mistakes, learn from their own experiences and enjoy the fruits of their own success.
Here is what academic researchers say: "Efficient market theory asserts that in today's market, where the distribution of information is close to perfect, no one market participant can get better information than another, and hence all stock prices exactly reflect what everyone knows. The only time prices change is when new information appears on the market. This information cannot be hidden in any way and immediately becomes available to all participants. Therefore, there is no point in trying to catch a good moment before others".
But KimIV is right.
Metatrader 2007: Imagine you need to exchange a hundred quid for a euro, and there's no forex (not in any form, ie no exchangers or banks on the streets either). Listen carefully how you will do it. :) (This is about the 'parasitic' market and its unnecessary).
It's a speculative market, which is the problem for speculators - there are a lot of competitors and everyone is trying to cheat with their systems :)
But KimIV is right.
Metatrader 2007: Imagine you need to exchange a hundred quid for euro, and there's no forex (not in any form, ie no exchangers or banks on the streets either). Listen carefully how you will do it. :)
Forex in its current form was created in 1975 by a market formation agreement in Kingston, Jamaica. But currencies existed before and were exchanged back then. So forex is not a hindrance if you need to exchange one currency for another.
The price is driven by information, which becomes known to everyone immediately through the news agencies. After the news, the movement begins, and then the indicators react to it, on the basis of which technical analysis is made and the trades are executed. Thus, TS built on the indicators knowingly cannot outplay the market, and therefore on a rather long period of time they have a negative expectation of maturity and all lead to losses.
It's a speculative market, that's the problem for speculators - there's a lot of competition and everyone is trying to cheat with their systems :)
But KimIV is right.
Metatrader 2007: Imagine you need to exchange a hundred quid for euro, and there's no forex (not in any form, ie no exchangers or banks on the streets either). Listen carefully how you will do it. :)
Forex in its current form was created in 1975 by a market formation agreement in Kingston, Jamaica. But currencies existed before and were exchanged back then. So forex is not a hindrance if you need to exchange one currency for another.
So I asked, how exactly will you exchange? For example now I can go out in the street, walk 15 minutes to an exchange office and change. 15 minutes only. And I clearly know that the exchange price is about the same in other places. And I don't have to run all over town to find the price picture (the depth of the market).
And how will you do the exchange? How much time will it take to find counterparties (they must not be speculators, otherwise it is already a "parasitic" market)?
Prices are driven by information, it becomes known to everyone at once thanks to news agencies. After the news starts the movement, and then the indicators react to it, on the basis of which technical analysis is performed and trades are made. Thus, TS built on the indicators knowingly cannot outplay the market, and therefore on a rather long period of time they have a negative expectation of maturity and all lead to losses.