Simulate the situation. If 1,000 people were forced to trade amongst themselves, how would the graph behave? - page 21
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The terms are incomplete and not quite correctly worded. Where will the traded asset come from and how much of it? What is the extent to which participants are aware of the equilibrium price? What is the motivation behind the trading? How will trading physically take place - apparently through a cup, but this needs to be specified.
If we try to clarify this incomplete wording, we might suggest the following - the participants should not only be given 100 tugriks each, but also a certain amount of assets, for example 100A. For motivation, for example, it can be proposed that tugriks traded above the initial level will be given at the end of the experiment, and correspondingly A - redeemed. Trading is done through the market place, i.e. by placing limit orders.
If everyone has the same number of units and the same number of thugs, for example 100 of each, everyone will instantly calculate an equilibrium price of 1A/tugrik and the trade will not take place, because everyone will place Limit orders above and below the fair market price. A few risk takers will try to buy high and sell low, and then sit tight with those orders till the end of the tournament and take a loss at the end.
The game will more accurately reflect the real situation on the market, if different participants are given the asset and Tugrik in different ratios - someone 100/100, someone 150/50, and someone 50/150. Intuitively, their own equilibrium price will be translated to other participants, the price will fly for a while around the equilibrium until it will eventually converge to the equilibrium. The losers are those who sold too cheap and those who bought too expensive. This is roughly what happens in a real market - different participants have different degrees of awareness of the current equilibrium price.
Yes, right decision!
What makes you think that crowd behaviour affects price movement...?
It is not an axiom, but ONE of MANY possible outcomes...
Considering that the crowd is ALWAYS and ALWAYS lagging behind the price movement, the conclusion is obvious - the reaction of the crowd is SEVERAL to the price movement...
The price does not move on its own, but in response to the crowd's reaction, and the crowd in turn reacts to the price movement... and nothing here can be primary or secondary, and price and the crowd are equivalent and react to each other's actions...
it's like asking what came first, the egg or the chicken? the chicken came from the egg and the egg from the chicken, the price from the traders and the traders from the price.
price does not move on its own, but in response to the reaction of the crowd, and the crowd in turn reacts to price movements. nothing here can be primary or secondary, and price and the crowd are equivalent and react to each other's actions...
it's like asking what came first, the egg or the chicken? the chicken comes from the egg and the egg from the chicken, the price comes from the traders and the traders come from the price.
I agree with your first statement by 200%.
With the second, no. The egg is primary, of course.
A chicken can give either an egg or nothing, 1 or 0.
An egg can give either a chicken or a rooster or nothing, 1 or 1 or 0.
The egg was invented for survival, with many possible combinations.
Another myth: the glass is half full or half empty. Of course it's full.
It was originally invented to be filled.
I agree with your first statement by 200%.
With the second, no. The egg is primary, of course.
A chicken can give either an egg or nothing, 1 or 0.
An egg can give either a chicken or a rooster or nothing, 1 or 1 or 0.
The egg was invented for survival, with many possible combinations.
Another myth: the glass is half full or half empty. Of course it's full.
It was originally invented to be filled.
Funny about the glass)). That's a good point.
price does not move on its own, but in response to the reaction of the crowd, and the crowd in turn reacts to the price movement. nothing here can be primary or secondary, and price and the crowd are equivalent and react to each other's actions...
Right, right...
And then there's the theory that"the price doesn't move on its own" but depends on lunar and solar cycles...
And another dude personally, alone, turned the pound around....mind you - without the crowd....
And then there's the influence of aliens and world intelligence... and also no one asked us ( the crowd ) but the price has turned around...
Or maybe it was the crowd that influenced the aliens, and the price turned around?
And on the subject: the winner is always the organiser: the auction, the market, the venue, etc. And the drawing will be like in the game eagle/trella. Make at least 1000 coin tosses, DO NOT LOSE, spend 120 min., get enlightenment, build a graph of heads=+5 mm. up, tails=-5 mm. down. Lots of interesting things to discover: support and resistance lines, Gann rays, etc. By the way, I'm not saying you can't make money trading.
People can communicate through the glass (it was proven a long time ago)). If everyone starts putting their bids on the same level, others will pull up too.
In the end, everyone will come to the same price.
price does not move on its own, but in response to the reaction of the crowd, and the crowd in turn reacts to the price movement. nothing here can be primary or secondary, and price and the crowd are equivalent and react to each other's actions...
it's like asking, what came first, the egg or the chicken? the chicken comes from the egg and the egg from the chicken, the price from the traders and the traders from the price.
It's all right here. The crowd is the flock. Rushing back and forth, reeling in the price. On the other hand, those at the helm, like shepherds, force the crowd to go where it needs to go.
That's great! Good post.
if those discussing that post only understood what it was about...
it doesn't matter how many people are in the market, the pattern is still not that
it's that only one will win.
In our case, the owner of the forex
))))