Is there proof of profit from using Autotrading? - page 19
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But then all the capital should have been evenly distributed among the participants. Look at the land, why is the land that colour? Because everything is displaced, without any specific impact. And if you look at the beach, you can already see the difference. After all, water affects and changes the land.
If everybody had the same capital, communism would come. :) In reality, someone could shift the price by several orders of magnitude, as he has more capital, and someone will be devoured without being noticed, as his capital is just a little grain of sand on the beach.
If everyone had the same capital, communism would come. :) In fact, some might move the price by several orders of magnitude because they have more capital, while others will be devoured without being noticed, as their capital is only a small grain of sand on the beach like the one you mentioned.
The point is different, if there is no regularity the possibility of profit is 0 and the loss is also 0 because it is 50/50.
There has to be a foundation on which all this (forex profits) is built, it may be much more primitive than is commonly believed.
Of course, there has to be. But this "foundation" is not something immutable and it is also changing with the course of time. But these changes are slow compared to the rapidly changing "quicksand" of the forex market.
It's a big picture, a view from a great distance. ;)
It is good. But the phrase is incomplete. And it implies the presence of determinism and goal-setting. In this interpretation it would be truer.
In other words, develop a theory.
What is determinism? It is the doctrine of interrelation and interdetermination of all processes occurring in the world. But why develop this theory?
Someone bought on the market in high volume - that's the reason, the price went up - that's the consequence. Who can buy with a bigger volume? Probably, the one who has more capital and has such an opportunity. Small traders will start losing money, as they cannot sell more and cannot stop price rise. That is the whole theory.
There is no theory, just because you are earning now does not mean that you will earn the same in the future.
I'm paraphrasing:
If you are earning now, it does not mean that you will earn the same in the future --- because you have no theory.
What is determinism? It is the doctrine of the interconnection and interdetermination of all the processes occurring in the world. But why develop this theory?
Someone bought on the market in high volume - that's the reason, the price went up - that's the consequence. Who can buy with a lot of volume? Probably, the one who has more capital and has such an opportunity. Small traders will start losing money, because they cannot sell more and cannot stop the price rise. That is the whole theory.
Your example works on stocks, because volume is limited. But how does this apply to currency?
To paraphrase:
If you are earning now, it does not mean that you will also be earning in the future --- by virtue of the fact that you have no theory.
I take it you have a theory? By theory, do you mean a trading system? Or what? Because how does theory differ from practice? In theory everything may be smooth and fine, but in practice there may be situations for which there is no theoretical basis.
Your example works on stocks because volume is limited. But how does this apply to currency?
The same way it applies to stocks, or any commodity. The buyer will not buy anything without a seller, and the seller will not sell if there is no buyer. The market may be full of buy and sell orders, but the price will not move until someone comes to the market to buy/sell.
...
That's why when a market maker wants to "shake up" the price he starts hunting for stops. Which is a stop type order. When it is triggered this means that market deal initiation takes place, in case of BUY STOP buying at the market in case of SELL STOP selling at the market. And as I said above, market buying/selling starts to move the price in one direction or another. Going to the stop order accumulation zone is a favourite activity of the market maker, as he has to provide liquidity in the market. But he will not do it at his own expense, because he also wants to earn something.
I understand that you have this theory? By theory you mean a trading system? Or what? After all, how does theory differ from practice? Everything may be fine in theory, but in practice, there may be situations, for which there is no theoretical base.
Theory is not truth_in_the_last_instance. They are different things. But it strives for perfection ;)
Theory (Greek θεωρία - consideration, investigation) is a doctrine, a system of ideas or principles. It is a set of generalised statements that form a science or a section of it. The theory acts as an information model of synthetic knowledge, within which individual concepts, hypotheses and laws lose their former autonomy and become elements of a coherent system. In a theory, some judgements are deduced from other judgements on the basis of practical confirmations and/or rules of logical deduction. Theories are formulated, developed and tested according to the scientific method. A theory is preceded by a hypothesis which has received reproducible confirmation. A theory or theories combine with each other to become a doctrine. Ability to prognosticate is an important consequence of theoretical construction.
The theory is not a truth in the last instance. These are different things. But it strives for perfection ;)
Theory (Greek θεωρία - consideration, investigation) is a doctrine, a system of ideas or principles. It is a set of generalised statements that form a science or a section of it. The theory acts as an information model of synthetic knowledge, within which individual concepts, hypotheses and laws lose their former autonomy and become elements of a coherent system. In a theory, some judgements are derived from other judgements on the basis of practical corroborations and/or rules of logical inference. Theories are formulated, developed and tested according to the scientific method. A theory is preceded by a hypothesis which has received reproducible confirmation. A theory or theories combine with each other to become a doctrine. The ability to predict is an important consequence of the theoretical construction.
:) I could have read that on wikipedia too. But to the question of whether you have the theory that the top starter is talking about, you still haven't answered.