what is market inefficiency - page 6
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
cool explanation. introduced a new term. Entropy has been added to regularities, inefficiencies.
Even without entropy, it explains in simple words what efficient means. Efficient = difficult, unobvious, i.e. such, where it is difficult for speculator to take his sting with the purpose to extract profit. The harder it is, the higher the efficiency of a particular market. To put it into numbers, it's entropy, Hearst and whatever else they came up with.
I hope everyone realises how far this "theory" is from practice...?
About as far as our MPs are from the people, when they talk about how to live on 3 thousand a month...
But what is the substance? What is wrong and what is right?
If a random series could make money - then everyone would make money on a handicap.
and if a handicap became ineffective, then they would find the differences between a handicap and a random series - and make money on them.
is this a passing reference to this post?))
laughed)))
Market efficiency is the condition under which speculation is inefficient. I.e. everything is sold, bought, delivered stored at its price, without layers. Then secondary instruments are not needed. But it is an illusion. It is possible to do it with 3 instruments, but not with more. It has also been proven, by the way, that efficiency, i.e. the absence of layers in the producing sector is not possible.
https://en.wikipedia.org/wiki/Efficient-market_hypothesis
just a reminder...
And on the merits? What is wrong and how is it right?
You just need to develop "theories" not for your PhD thesis, but as close as possible to the real market...
https://en.wikipedia.org/wiki/Efficient-market_hypothesis
just a reminder...
Well yes, if the information about the product/service is complete, i.e. it is clear not only about specific products/services all, but also about all products/services. And then there is no room for speculation. There are actually a lot of interpretations. I like speculation better. clearer.
You just need to develop "theories" not for your PhD thesis, but as close to the real market as possible...
Market inefficiency, like efficiency, is a fiction of those who don't understand what's really going on.
a BP predictive analytics lecturer said something like this on the subject:
after ARIMA/SARIMA models failed to show proper performance in the markets, an efficient market theory was invented that prevents these models from working
;)
Yeah, I can see that. )))))) There's always something in the way of the dancers.