Surf random walk theory has been proven wrong and over the long run randomness of an individual event gets washed away....
The adaptive market theory is another way to look at the market but I fail to see how it can help profitability---- however, lo's son is one mean chess player!. Thanks! surf
Fascinating, the random walk hypothesis has been elevated to fact. I must have missed something along the way.
Check adaptive market theory. that's really the most cogent antithesis to the random walk-- but i don't find it practical. surf
14. Trading is not a solo endeavor. Price reading profit making savants are pure fantasy. Cultivate relationships and socialize-- relationship arbitrage is key to stay on the cutting edge of the changing financial market. Add value to others so value is exchanged back to you. Everyone can help you and everyone needs help in one way or the other.
I like looking at the ocean and my wife. In all seriousness, I am not talking about scalping minute by minute, but rather planned short term trades where orders are placed in advance to price moving events, sometimes straddled if the Price Drivers are uncertain--- the market isn't "watched" intraday physically, but rather via alerts-- this provides the freedom to do other things--- surf
For humor only! LOL. Wonder if he is still among the living? He has been very quiet lately. I also wonder if he was just someone's alter ego who was poking fun at traders??!
What does adaptive market HYPOTHESIS have to do with your point that the markets are random? Again, you are elevating something to what it isn't. Lo offered no evidence that would lead one to use it as a working basis for analysing the markets, and nothing to prove randomness.