You can't forecast something irrational and wayward (the market)

Discussion in 'Psychology' started by crgarcia, Aug 3, 2009.

  1. Efficiency at it's highest level?

    If so then:
    A. Why banks blew up by issuing mortgages to people who couldn't pay?
    B. Markets paid hyper-high premiums for companies who could never be profitable (dotcoms)?
    C. Stock markets plunged 50% in about a year (if they were so efficient why they didn't forecast and discount a recession)?

    Markets are not and will never be efficient, or rational.
     
    #11     Aug 5, 2009
  2. Which is precisely why one can make so much money day trading :)

     
    #12     Aug 5, 2009
  3. +1
     
    #13     Aug 5, 2009
  4. Can?
    Yes, you can.

    Is it likely?
    No
     
    #14     Aug 5, 2009

  5. Traders don't forcast anything. They trade what they see. You didn't have to forcast the dot com bubble in order to trade it.

    Patience and capital are all the is required, of which you apparently have neither.
     
    #15     Aug 5, 2009
  6. He said, "dream", not that it is so. Need some reading glasses?
     
    #16     Aug 5, 2009
  7. Can?
    Yes, you can.

    Is it likely if your name is crgarcia?
    No
     
    #17     Aug 5, 2009
  8. Well, I am one person and I made it and continue to make it so all I know is 1 for 1!
    :)

     
    #18     Aug 5, 2009

  9. héhé best argument... I can't understand how economic teacher in Uni are able to say the contrary in front of more than 100+ kids, and no one see the absurdity of such a claim... but as he is the teacher he has a such power that even if you know it's wrong you have to shut your mouth and hope for freedom !
     
    #19     Aug 6, 2009
  10. Unless you are a multimillionaire, like in the movie Back to School.
     
    #20     Aug 10, 2009