--- In AsburyPark@yahoogroups.com, "oakdorf" <[EMAIL PROTECTED]> wrote:
>
> --- In AsburyPark@yahoogroups.com, "Mario" <MarioAPNJ@> wrote:
> >
> > In a message dated 11/9/2007 11:09:32 A.M. Eastern Standard Time,
> > dfsavgny@ writes:
> > All kidding aside, much of the market is psychological.
>
>
> So is blackjack.
>
We can clear a table when we say we play "no rule" blackjack.
The market is the same way - the best mathematicians/programmers win.
>From an old article:.....
They pointed out that if countless traders are competing to buy and
sell stocks at what they think, based on rational considerations, are
their proper values, then the market will always instantaneously
adjust the price of each stock to what it's worth. Moreover, any
information relevant to the real value of the stock--news, or insider
information, or anything else--will also be instantaneously absorbed
into the price. When the market moves in response to any news, so the
theory goes, it will move so quickly that no one will be able to make
money reliably.
To Lo, the EMH has a "Zen-like", beauty. "What it says is that the
more people who try to forecast markets, the less forecastable
markets tend to be," he explains. "If there is any kind of fore-
castability in prices, somebody is going to take advantage of it, so
if there are enough people competing with each other to try to take
advantage of small forecastabilities, then all of those
forecastabilities will be dissipated."
Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/AsburyPark/
<*> Your email settings:
Individual Email | Traditional
<*> To change settings online go to:
http://groups.yahoo.com/group/AsburyPark/join
(Yahoo! ID required)
<*> To change settings via email:
mailto:[EMAIL PROTECTED]
mailto:[EMAIL PROTECTED]
<*> To unsubscribe from this group, send an email to:
[EMAIL PROTECTED]
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
