Formalising common approaches to trading - page 17

 
FAGOTT:

What is 'real (fair) value of a commodity'?

About value, for example, here.

By the way, there is an interesting point here, there is no exact definition of it, but there is a mechanism for approximation.

Perhaps this is normal, because if there was some formula to determine the exact value, then the markets would be completely different, i.e. the need for it would be questionable ;)

And what exactly is the benefit to society of a profitable trader?

If he wasn't benefiting, it would contradict the efficiency of the market.

Another way of asking is, what benefit does a good jewellery appraiser bring to society?

 
BLACK_BOX:

About the cost, for example, here.

If it didn't bring value, it would contradict the efficiency of the market.

You could also ask, what is the benefit of a good jewellery appraiser?


where - here? the link didn't go through.

I'm not quite sure what does market efficiency have to do with the benefit of a profitable trader with a maximum position for the economic society?

For example, hedge funds play maximum positions on oil. They are pushing the price of oil to, say, $140 per barrel. At a time when real demand for oil with real delivery by energy companies has risen at a much lower rate. A financial bubble is present. Developed economies are going into economic crisis because of these energy prices. The crisis turns into a global crisis, but the traders made money on the bubble they blew.

Where is the benefit?

 
BLACK_BOX:

About the cost, for example, here.

Thanks, the link went through, but I was asking about the "real, fair value" of commodities on the financial markets that every trader seeks to value.
 
FAGOTT:


Where - here? The link didn't go through.

I don't quite understand the market efficiency and the benefit of a profitable trader with a maximum position to the economic society?

For example, hedge funds play the largest possible positions in oil. They are pushing the price of oil to, say, $140 a barrel. At a time when real demand for oil with real delivery by energy companies has risen at a much lower rate. A financial bubble is present. Developed economies are going into economic crisis because of these energy prices. The crisis turns into a global crisis, but the traders made money on the bubble they blew.

Where is the benefit?

Corrected the link.

I'm not trying to "discover" any truth or argue about the usefulness or otherwise of traders, hence the market. I`m only trying to help concerning this subject.

 
BLACK_BOX:

Deception or self-deception are very subjective in this context. The effectiveness of decisions depends directly on the amount and relevance of the information processed, taking into account the costs of processing.

OK, let it not be deception, but manipulation of consciousness, the only question is that I believe that the "crowd" cannot create trends, and no matter how much one argues, there are trends. Imho, the crowd can only cause price deviation, which will be similar to noise, but not trends.
 
such a branch was...
 
IgorM:
OK, let it not be deception but manipulation of consciousness, the only question is that I believe that the "crowd" cannot create trends, and no matter how you argue, there are trends. Imho, the crowd can only cause price deviation, which will be similar to noise, but not trends.
Unfortunately, it is very difficult to formalise these notions as manipulation with consciousness or a crowd. A crowd can be a hedge fund crowd for example. All this is subjective imho. That's not the purpose of this thread either, as I understand it.
 
BLACK_BOX:
That's not the purpose of this thread either, as I understand it.

Yes, you're right, sorry - I was dreaming.

ZS: I remember reading that there are not many hedge funds in the world that have shown positive results over several years - imho and hedge funds do not "rule the trends".

 
FAGOTT:

Where is the benefit?

High volatility is a puncture for the regulator. Just look at the percentage movement of the eu to the quid - they tried their damnedest. Then there's the planned economy. By the way, what kind of tractors do you trade with?

ZS: in reducing volatility - finished, because I always talk briefly, without revealing my thought, I think you can communicate with people here on the fingers - I was surprised that there is no "named idols", again.

 
IgorM:
OK, let it not be deception but manipulation of consciousness, the only question is that I believe that the "crowd" cannot create trends, and no matter how you argue, there are trends. Imho, the crowd can only cause price deviation which will be similar to noise, but not trends.
I don't think so. I'm largely inclined to the opposite. Agitated processes (herd mentality) tend to create trends. They are countered by arbitrage as a restraining, "reversal" process that prevents trends from existing indefinitely.