Is trading completely useless?

Quote from basis:

1. Guy asks if trading is "useless".
2. Half a dozen people spout shit about the EMH, most of it poorly stated garbage.
3. ?
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That's an easy one.

3. Basis comes to say....nothing ! (of substance, I mean)
 
Quote from ACM Trader:

3. Basis comes to say....nothing ! (of substance, I mean)
More...

I'll make it easier for you, since you don't seem too bright.

I answered the OP's actual question on the first page. Then somehow the thread became a series of people talking about efficient markets, most of whom have no idea what they're talking about.

Thanks for stopping by.
 
Quote from basis:

I'll make it easier for you, since you don't seem too bright.

I answered the OP's actual question on the first page. Then somehow the thread became a series of people talking about efficient markets, most of whom have no idea what they're talking about.

Thanks for stopping by.
More...

Oh no, thanks to you. Your insight (manufacturing price) , humility and kindness are highly appreciated !
 
Quote from jem:

JEM

Theory of the markets. First published here in previous threads.


Spread prices between securites may show some consistent ratio suggesting to some the existence of an emh (except during large market selloffs) -- but the absolute prices of securties will be determined by liquidity or how much money is placed in funds by the public and institutions.

As money goes in prices and PE levels go up as money goes out prices and PE multiples go down.


I call your attention to the fact that the nasdaq 100 had negative earnings at the all time peak and then got cut by what (70% ) ? with very profitabble trading sessions. it did not just drop overnight.
there was money to be made almost every day for a long time.

How can anyone trade through that period and not realize the market is driven by liqidity and not some emh concept.

Although I allow for the fact that the relationship between securties as a whole will stay stable, individual secuties can still be mispriced.
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The daily settlement at 1:15 (NYSE time) collectively, is the measure of what you speak. That net flow drives supply and demand and thus the dynamic of the market. As you say, current value is determine by those participating actively in the markets.

Right now, we are down about 5 billion (net outflow) over the last 2 months. This translates to a daily take in indexes that is relatively high.
 
buy and hold with a consistent volatility pumping at the end of each month will usually return more than 95% of the marketed strategies out there.
 
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