Does Probability exist?

Trading is constantly solving one problem: where will the market go?

If you don't know the cause of the problem, you cannot solve it. First try to find the cause, and second try to find a solution for the problem.

Keeper.
 
As trading is behavior, the question becomes whether or not one can determine the probability of a behavior or set of behaviors occurring again. If one could not, the advertising industry would collapse, and capitalism would struggle to survive.

The principles of successful stock speculation are based on the supposition that people will continue in the future to make the mistakes that they have made in the past.

-- T F Woodlock

CAUTION!!

100% false and very misleading information. Just think, folks!

surf
 
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I don't agree at all and will show you why:
I have a list of figures and ask you if you can predict the next figure. The answer will be probably that it is impossible to predict the next outcome.

124
1330,785053
-4008,196198
-2066,517015
-1574,077766
221,5751715
????

What is interesting now is the question: why did you come to the conclusion that it is impossible to predict the next outcome? The answer is that YOU see no relation whatsoever in this serie of figures. And you are correct. To YOU it is impossible to make any prediction and it looks like everything changes all the time randomly.

I can however make with 100% certainty a prediction for the next figure. Why? Because I have more information, information that you don't have. I see the formulas that leads to the next result.
View attachment 152279

So people come to conclusions based on knowledge. No knowlegde means no result, having the needed knowledge will lead to the correct result. In markets knowledge is important too. You maybe have no clue why the market does do something, but maybe someone else has knowledge to know ancwhat will happen. Markets cannot move each time in a way that never occured before, because that would lead to an endless number of different moves. If you can find basic patterns in all these moves you have knowledge that others don't have. That makes the difference between a profitable trader and a losing one.

Trading is constantly solving one problem: where will the market go?
If you don't know the cause of the problem, you cannot solve it. First try to find the cause, and second try to find a solution for the problem.

Totally false and misleading information. I guess these folks work for the brokers who survive by propagating such material. This is basically saying to find the "cause" is by looking at the "result" which is price. Assbackwards and twisted--- yet strangely appealing. I nearly felt a state of zen when reading the above post---- think about it, don't let your mind go down this path. surf
 
You know NOTHING about me.
You say I probably work for brokers. That's a lie (I can know that and you don't) and an insinuation without any proof at all. Not the first time. But that is typical for gurus.

Those who liked my posting are probably also working for brokers. Surfer fighting windmills like Don Quichotte.
You are a demagogue. Telling lies and adapting stories at your convenience.
People should always be careful when somebody warns them for some danger. In reality most of the time they are themselves the biggest danger by trying to put the focus on somebody else. Distraction.
So people should think about that when reading your (FALSE) statements.
So think about it, don't let your mind go down Surf's path.

Every invention starts with defining a problem, and then trying to solve it. But Surf denies that.
 
I don't agree at all and will show you why:
I have a list of figures and ask you if you can predict the next figure. The answer will be probably that it is impossible to predict the next outcome.

124
1330,785053
-4008,196198
-2066,517015
-1574,077766
221,5751715
????

What is interesting now is the question: why did you come to the conclusion that it is impossible to predict the next outcome? The answer is that YOU see no relation whatsoever in this serie of figures. And you are correct. To YOU it is impossible to make any prediction and it looks like everything changes all the time randomly.

I can however make with 100% certainty a prediction for the next figure. Why? Because I have more information, information that you don't have. I see the formulas that leads to the next result.
View attachment 152279

So people come to conclusions based on knowledge. No knowlegde means no result, having the needed knowledge will lead to the correct result. In markets knowledge is important too. You maybe have no clue why the market does do something, but maybe someone else has knowledge to know what will happen. Markets cannot move each time in a way that never occured before, because that would lead to an endless number of different moves. If you can find basic patterns in all these moves you have knowledge that others don't have. That makes the difference between a profitable trader and a losing one.

Trading is constantly solving one problem: where will the market go?
If you don't know the cause of the problem, you cannot solve it. First try to find the cause, and second try to find a solution for the problem.

You can derive a historical probability of an event x happening in the market from looking at history. However, since the distribution is not stationary i.e. it is not like roulette, your derived probability is subject to error in the future. This is how, for example, Long Term Capital Management destroyed themselves, by using historical data that since something had not happened before, there was no chance of it happening in the future.
 
You can derive a historical probability of an event x happening in the market from looking at history. However, since the distribution is not stationary i.e. it is not like roulette, your derived probability is subject to error in the future. This is how, for example, Long Term Capital Management destroyed themselves, by using historical data that since something had not happened before, there was no chance of it happening in the future.

Depends on whether one is looking at numbers or behavior. If the latter, there is nothing that has not happened before. Charles Mackay can tell you all about it.
 
You can derive a historical probability of an event x happening in the market from looking at history. However, since the distribution is not stationary i.e. it is not like roulette, your derived probability is subject to error in the future. This is how, for example, Long Term Capital Management destroyed themselves, by using historical data that since something had not happened before, there was no chance of it happening in the future.

Can you explain me then why this works on 1000+ consecutive trades (2-3 years period)?
Will not post the number of good signals, but much higher than statistically expected in "random" scenario.
Same scenario's repeat over and over again. This would contradict what you wrote I think.
I don't use historical data, I use historical behaviour. So maybe the example I gave was not correct because I never watch prices, I watch the development of the market behaviour. If I have a signal I react, no matter where the price is, price is irrelevant to me.
 
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