are markets truly random?

Discussion in 'Trading' started by wildknights, Dec 29, 2007.

  1. DeadPan

    DeadPan

    Even it is not random, no one is able to identify the rule. What is the difference between being random and not random...
     
    #11     Dec 30, 2007
  2. croupier

    croupier

    Picture: 10.000 x cointoss whit a "fair" coin, from the book: An Indroduction to probability Theory and its Application.


    Croupier
    :D
     
    #12     Dec 30, 2007
  3. sumosam

    sumosam

    If prices, time and cycles are clearly discernable how can one state that markets are random? Wouldn't this also negate the whole concept of TA? Certainly, the markets can do anything at any time...but patterns are also clearly present.
     
    #13     Dec 30, 2007
  4. bespoke

    bespoke

    Yes, they are random. Just ask every unprofitable trader as they know the truth.
     
    #14     Dec 30, 2007
  5. I think the RAND() function is a good approximator of a H/T coin flip though - would you agree?


     
    #15     Dec 30, 2007
  6. lol,that sums it up pretty well.
     
    #16     Dec 30, 2007
  7. markets are random most of the time, except when it's not.

     
    #17     Dec 30, 2007
  8. lol
     
    #18     Dec 30, 2007
  9. "Baker... decided the dollar had to come down.... Baker and the key finance ministers of France, West Germany, Japan, and Britain -- the so called Group of Five-- huddled in New York.. at the Plaza hotel. Soros learned about the meeting ... He worked through the night, buying millions of yen.
    Soros called the Plaza accord coup, 'the killing of a lifetime.'""

    SOROS The Unauthorized Biography, R. Slater

    Somehow, I don't think Soros used TA pattern recognition to make his billions. The key separator between the PHD pauper and the rich speculator is called quality of information. Assuming that you, like the millions of masses are not privileged to such information, the resultant information plotted on a chart, will for all intents and purposes, appear as random.
     
    #19     Dec 30, 2007
  10. the markets are not random. stocks don't follow a normal distribution curve.

    people who say markets are random don't understand statistics.
     
    #20     Dec 30, 2007