What is this thing called âThe Marketâ ?
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 âThe Marketâ is confused, âThe Marketâ is choppy âThe Marketâ .... 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 isnât, 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
Thanks
Bob
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 âThe Marketâ is confused, âThe Marketâ is choppy âThe Marketâ .... 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 isnât, 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
Thanks
Bob