Why have the markets pattern?

Discussion in 'Trading' started by HATEtheRisk, Feb 10, 2012.

  1. As we all know, its a fact.

    Plz, explain to me.............

    How to explain it in easy words, why they logicaly must have patterns?

    Random VS pattern

    Supply & Demand

    Banks & Hedge Fonds, rule the markets, they do not do things without a reason.........

    Self repeating behaviour pattern of humans, like in every subject.


    Imagine, i would not know that there are patterns everywhere, how could you explain it to me that they are there, so that i would believe it....... ????

  2. There can be patterns that are marginally profitable, but it's a lot harder to find patterns that really do repeat unless you have optimized on indicators without extremum endpoints. Those will last a lot longer, and they aren't in any of the literature or even discussed in the media because the definitions and quant logic with them is not easy to understand. Supply and Demand is an explanation and theory, but cannot be measured.
  3. LOL:p

    thats not what i wanted to hear.....

    I know it that there are pattern what work perfect, no discussion here. Doesnt matter what anyone believes, i know it. OK, just accept it this time.......

    Now, How do you explain it to someone who does not believe it.

    Thats my question ??? ok...??

    Maybe a second question, how do the big banks and hedge fund - traders, be constant successfull in discretionary trading ???

    Patterns ???

    I just want an easy explanation, like for an child.
    So easy as possible.

    Thank you
  4. The easy explanation is they pay for split second advantages, and the traders you hear about may be just as likely to bubble up as when you start a website to track 17,000+ "trading systems" and just so happen to see a few "rise to the top" from randomness.
  5. LOL

    Well, let´s explain it this way. Have you ever played a videogame? When some character uses an attack, he always repeat the same sequence of movements. At first you never know what he gonna do, but with time you recognize it a first sight.
    The same occurs in the market. Big and small players have an "attack" that give them money, so they use it constantly, obviously with the same movements. This creates patterns. They are hard to recognize (by the quantity of participants, noise, etc) but once you are in the environment enough time you start to see all this things, and develop an "edge", that only you had recognized.
  6. LOL:p

    A kid would never understand this........
  7. Ok, but why is this so ???
    :p :p :p

  8. It might be because we share 99% of genes so we react similarly. :D

    Also, we share i think 95% of genes with monkeys. :D :D :D
  9. Whats with this explanation ?

    The markets are just a pot of money, where everybody can throw money in it.

    But only a few people can take money out of it.

    They few are the ones who always do the same thing.
    Because everybody knows, No 1 Rule to be successfull in anything is: " Never change a winning system".

    This few are Big Banks and Hedge Fund - Traders, because they are 10% of winners of the participants. Means, they take all the money from the 90% losers, who do not know this pattern, and so they are not allowed to take money out of the pot.

    So, patterns are there, because only so you can have a market.
    The small fish, feed the big fish.

    This is a unique game, and only there to scam the small investor who does not know about this pattern. So it works, how it always have.....

    You see my kid, its easy, isnt it ???

    Any better idea.........???

    :p :p :p
    #10     Feb 10, 2012