How are you with a market mindset?

 

Here we will try to clarify and discuss participants' perceptions of the market, market relations, observable market mechanisms, principles of organising optimal trade/purchase in the real market for goods and services from the perspective of entrepreneurs/sellers and buyers/consumers.

Let us first define the concept of MARKET. What are the differences between the market of goods and services and the financial markets, if we can think of it after a comprehensive analysis of the real market with which we have been confronted since childhood and have developed, in our opinion, some immutable rules of doing business in the market.

So, a MARKET is a place or space, real or virtual, where participants seek and find material and/or moral benefit in the form of hidden or apparent profit, the acquisition of quality and/or fashionable, necessary, new, .... products.

I suggest discussing the following topics, in your opinion, if you are a seller and/or buyer:

1. How the current market price is formed in the real market of goods and services, what are the main factors influencing its formation in your opinion?

2. Buying cheaper - selling more expensive, what are the limits of cheapness and expensiveness?

3. At what price should you buy/sell to get the biggest profit or other benefit?

4. How to determine the marginal selling price of a product on a particular market?

5. Demand and supply are evaluated by the elasticity coefficient - how many times will the income change if the price changes by one unit or is it better to evaluate by supply and demand curves?

6. Do you believe in inevitability and necessity of the existence of virtual prices on the real market of goods and services?

7. Did you know that, in addition to the current price of the product, which you can learn about by asking each seller for the price of the product, there is a virtual market price that hovers over the market, of which neither the seller nor the buyer knows, but that it somehow forces, unknown to both the buyer and seller, to buy and sell the way the sale was accomplished, and not otherwise?

This list will be continued by me and by you

 
a warehouse full of intelligence, you might say a rewiring of the mind...
 
Vladimir Pastushak:
A warehouse full of mind, you might say a rewiring of the mind...

That's what it takes to unload your brain so you don't go crazy.

 

The market was not originally created for profit. It was created for exchange. And profit is made by

a) Investors

b) Speculators.

The former have big money and create entire financial structures to form hedge funds.

The latter are very angry animals, mainly using high-speed information exchange channels, as a rule, the server response delay does not exceed 2-3 msec.

The only rule is to recursively assess yourself market your possibilities and always self-develop.

Usually angry speculators from having a hard time making profits, even with the help of algorithmic trading.


Spread and commission ..... also greatly influence speculative profits... because there are more trades and the load on average profit is higher.

following year the market may be considered unstable, as the volume of deals is higher, while the average profit varies depending on the trader's situation:

1. lucky and will be lucky for six months to a year at the most

2. generalists

The latter do not trade on the buy or sell side. We think broadly ... Much wider. It is almost impossible to enter this circle. We think in terms of the quantum world... all events can happen at any moment. We will never lose or reveal our real names. we will never reveal our strategy. we will never tell you how to get to us. But we help anyone who asks for a fairly modest amount. And we only show the doors, but never open them. Because all all-rounders know that only the drowning man can open a door.

As a rule, all universalists have spent at least 20,000 man-hours on the trade, with the obligatory final result of a positive, sustainable and controllable result.

These are the prerequisites for proving a master's worthiness.

The chance of becoming one is about 0.0001%.

We have underachievers and otlichniki and smart and not very different ... but united all hatched a down-to-earth and strict materialistic sober view of things.

They give you 200 quid just once and wait a year until you make 500 or something and deposit it in your bank account. You have to be so safe that you can take out a loan of millions and deposit it in your account for speculative gain.

If you fail, you are out,

too high a load on the deposit - you are out,

Too high load of commissions on the average profit of the transaction - you are out.

Too high standard deviation of the profit line relative to equity (more than 20-30% of the final profit) - are out.

 
I have an idea, but I can't get around to checking it out. The bottom line is this: there is an algorithm (formula) which develops the price. It is quite elementary. The chart's form depends only on the number of deals performed on the asset and a discretization noise by ticks or time is applied there. The discretization should be based on the performed deals. Then if we take Gazprom and 1 million transactions were made on it, and take VTB, for example, then when a million operations were made on it, the charts will be similar. It is more complicated for currencies. We need to consider the number of dollar transactions separately and get its absolute rate, then it will be similar for euro and to calculate the eurodollar price from it. For currencies the number of transactions will be extremely large, several thousand orders of magnitude. Therefore, the stock chart will never resemble the currency chart, the company will not survive.
 
Maxim Romanov:
I have one idea, but I can't get around to checking it out. In general, the point is this: there is an algorithm (formula) by which the price develops. It is quite elementary. The chart's form depends only on the number of deals performed on the asset and a discretization noise by ticks and time is applied there. The discretization should be based on the performed deals. Then if we take Gazprom and 1 million transactions were made on it, and let's take VTB, then when a million operations were made on it, the charts will be equal. It is more complicated for currencies. We need to consider the number of dollar transactions separately and get its absolute rate, then it will be similar for euro and to calculate the eurodollar price from it. For currencies the number of transactions will be incredibly large, several thousand orders of magnitude. Therefore, the stock chart will never resemble the currency chart, the company will not survive that long.

Give me this formula, how and under what circumstances it was obtained, by whom and where it was tested.

 
There can be no pricing formula in principle.
 
Martin Cheguevara:
There can be no pricing formula in principle.

You will soon see your beliefs disproved by looking at actual trade in a particular product.

 
Yousufkhodja Sultonov:

Soon you will see a refutation of your beliefs by looking at actual trading of specific products.

I am looking forward to it) I was of course referring to the foreign exchange market.

 
Martin Cheguevara:

I am looking forward to it) I was of course referring to the foreign exchange market.

We agreed that we would first look at the real market for goods and services and then try to extend this mechanism to the foreign exchange market. You will have to bear with us until we have dealt with the real market. You won't believe it, there are still many unknowns and unknowns, even here, in spite of the abundance of Nobel Prize winners in the field. This market has not yet been adequately described. All the cream has been skimmed off and the basis remains untouched and unknown until now. The great scientists thought that everything here is very elementary and not worthy of their attention. In reality nothing is known. Everything remains at the level of speculation and demagogy, there is no strict mathematical analysis of the market. I would be happy if someone could show me the formula for profit, which coincides with the obvious definition of profit as the difference between income and all kinds of expenses, known since ancient times. Basically, I will try here to explain, verbally, the chain of formulas from the articlehttps://www.mql5.com/ru/articles/1825 , each of which, being a market tool, will sound an ensemble as a whole, creating a market symphony, from which one will get indescribable pleasure. Moreover, it will be proved that, all this performance will only satisfy 17 varieties of price, confirming the hypothesis - everything is determined by price. We will be forced to accept that, everything has its price, both fixed and variable costs, for example.

Теория рынка
Теория рынка
  • www.mql5.com
Рынок — это механизм товарно-денежных отношений, действующий на базе присущих им законов, связывающий покупателей (представителей спроса) и продавцов (представителей предложения) и формирующий цены на объекты купли-продажи. Цена — главный ориентир рыночных отношений. Она представляет собой (в соответствии с трудовой теорией стоимости) денежное...
 
Yousufkhodja Sultonov:

We agreed that we would first look at the real market for goods and services, and then we would try to extend this mechanism to the foreign exchange market. You will have to bear with us for a little while until we have dealt with the real market. You won't believe it, there are still many unknowns and unknowns, even here, in spite of the abundance of Nobel Prize winners in the field. This market has not yet been adequately described. All the cream has been skimmed off, and the basis has remained untouched and unknown until now. The great scientists thought that everything here is very elementary and not worthy of their attention. In fact - nothing is known. Everything remains at the level of speculation and demagogy, there is no strict mathematical analysis of the market. I will be glad if someone will point to the formula of profit, which coincides with the obvious definition of profit as the difference between income and all kinds of expenses, which has been known since ancient times.

D-S(r1...rX)

Reason: