Book: The Misbehavior of Markets

Discussion in 'Educational Resources' started by jerryz, Oct 28, 2005.

  1. jerryz


  2. good for theorizing, zero use for trading unless you use fractals in your trading.
  3. Very good book. Easy to read, scientifically thorough, interesting.
    Gives some insight, but in a practical sense applies to market makers in options and to hedgers only.
  4. timbo


    It's a good book and probably should be on everyone's bookshelf. However, Benoit only states the obvious and brings nothing new to the table - albeit, no new solutions.
  5. Q

    A Look At Market-Moving Numbers - Literally

    By Benoit B. Mandelbrot and Richard L. Hudson

    Wall Street, as ever, confounds. But the mysterious behavior of financial markets attracts academics eager to uncover investing secrets. For the past 40 years, Yale University mathematician Benoit B. Mandelbrot, founder of a branch of mathematics called fractal geometry, has applied his academic theories to financial markets. His findings are explored in a book he has written with Richard L. Hudson, former managing editor of The Wall Street Journal Europe, titled "The (Mis)Behavior of Markets: A Fractal View of Risk, Ruin and Reward." In the following excerpt, Richard Olsen, a Swiss fund manager and specialist in mathematical finance, illustrates Mr. Mandelbrot's view of the financial markets: They aren't mysterious, but rather physical systems that ought to be examined scientifically and engineered rationally.
  6. nitro


    I enjoyed reading that article - thanks for posting it.

  7. Odd. WHY did you post that link? Are you a closet sadist? I just ate breakfast. Page one made me queasy. By page two I was burping up gas. At page three I finally purged. Aggregating eight indicators, most of which are redundant with one another? Treating trading mathematically when it is psychological? Ignoring the possibility of manipulation? The less people actually TRADE, the more they seem to fall for deterministic or optimal estimation fallacies. The markets function in such a way as in the aggregate to make market order participants WRONG. Their constant striving to find a mechanistic way to be right is what keeps them coming back for more abuse. In the aggregate, mind. Just read the posts here, hahahaha! Mike.
    #10     Oct 30, 2005