What is this thing called "The Market"?

Discussion in 'Trading' started by gifropan, Feb 12, 2008.

  1. What is this thing called “The Market” ?

    It reminds me of the Cole Porter song "What Is This Thing Called Love"!

    We often hear analysts, traders and market commentators refer to "The Market". The “The Market” is confused, “The Market” is choppy “The Market” .... It appears as if the market is something inert and independent of human beings with a mind of its own. Something like, say, gravity. Gravity is there with or without human beings existing in the universe. All man has tried to do is to understand how it works and people like Newton and Einstein amongst others have done much study and contributed tremendously to our understanding of this phenomenon. Today we can predict, with great accuracy, the motions of the planets and the stars in the heavens many years into the future. Yet there is, to my knowledge, no method remotely as accurate, of predicting what a particular market will do two hours into the future let alone any longer term prediction.

    The market is not like gravity. The market is, in its simplest form, buying and selling between people. One would expect this to be a simpler phenomenon to understand than discovering the laws of nature. Why is it that the prediction of what is just simple buying and selling must be so complicated. I am not sure whether I am putting my point across effectively. I FEEL that trading and predicting what prices will do should be far simpler than it is. But it isn’t, is it?

    I am hoping that by putting this post here someone can respond and enlighten me and shed some light and perhaps unravel the mystery


  2. gravity is a science. the market is random.
  3. jsmooth


    it's a risk transferring mechanism
  4. Here we are again. You are referring to "the market" as if it is something out side human behaviour which needs to be understood like we are trying to understand the laws of nature. Isn't the market just us? Do we not understand ourselves? What is it that I am missing. A roulette wheel is random and an inert object. We try and understand its behavious by the laws of probability. But the markets are people. Why are they so hard to understand??
  5. Ever had any dealings with WIMMIN?
  6. Yeh man, I have read the same book. It starts exactly this way. It can't be a mere concidence with your post. You should always quote your sources of confusion.

  7. Honestly I don't know which book you are talking about. I put that post from no book. It is just my own frustrations coming out in failing to predict markets movement as often as I do.


    Love to know which book you are referring to.
  8. A simple global exchange of goods and services that has grown from the very basics of exchanging grains for spices a couple thousand years ago. Supply and demand, in a more systematic way today of course.

    You exchange pieces of paper that you spent hours of your life to accumulate for food that groups of farmers grew and truck drivers delivered to local markets who must pay employees with those same pieces of paper (or bank computer codes).

    The "Circle of Financial Life."


  9. Maybe you are the author! No, I no going advertize no book here but you are either the author or you don't quote your sources, can't be pure chance.

  10. Honestly Bill I am not. I know nothing about this book. You must believe me and I would really be interested to know its name.
    #10     Feb 12, 2008