Philosophy #1

Discussion in 'Trading' started by ttrader, Jul 21, 2002.

  1. ttrader

    ttrader


    LOL LOL LOL :D

    But don't forget: good traders - to whom to date I don't count myself, but personally I know some - appear to be more behaved, too ...
     
    #11     Jul 21, 2002
  2. Rigel

    Rigel

    If the market were depicted like a moving weather satellite image of the earth with pressure gradient contours I don't think it would look anything like a weather image where you can easily see where the clouds are heading. I think it would look more like a map of the sun with its' roiling chaotic surface currents and sporadic high energy explosions(sunspots)which gestate under the surface and are difficult to detect ahead of time.
     
    #12     Jul 21, 2002
  3. Meteoroligists don't have to meet margin calls if it rains 3 days in a row..
     
    #13     Jul 21, 2002
  4. Actually, if you trade weather futures, you just might have to meet a margin call after 3 days rain.

    Now if both meteorologists and stock analysts were forced to take financial positions to back up their prognostications, the world would be a safer place! (Actually, it would be a quieter place cuz all the analysts would pack up their toys and go home. That might not be so bad either)

    -Traden4Alpha
     
    #14     Jul 22, 2002
  5. 85% probability?

    The weather for Florida in the summer is always: it's hot and it will probably rain. Saying "PM Tstorms" is not the same as saying "it will rain at the airport from 2:18-2:35 pm."

    Can we really predict the weather? It depends on the definition of "predict."

    Tomorrow I predict that some stocks will go down.
     
    #15     Jul 22, 2002
  6. actually chasinfla nailed it I think, since predictions about the market effect the market. That is about what George Soros' "Theory of Reflexivity" is.

    Then someone else mentioned that if you just predict that the weather tommorrow will be the same as the weather today, you will be right more than the forcasters. That sounds like trend following to me.
     
    #16     Jul 22, 2002
  7. ttrader

    ttrader

    Searched for "weather forecast accuracy" on http://www.google.com ...
     
    #17     Jul 24, 2002