Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Question for the technical analysts
Old 03-12-2006, 02:44 AM   #1
Full time employment: Posting here.
Join Date: Feb 2006
Posts: 784
Question for the technical analysts

Do you understand the Markov property?

If so, can you explain to me your rationale for trading?

Cool Dood is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Question for the technical analysts
Old 03-12-2006, 03:19 AM   #2
Recycles dryer sheets
Join Date: May 2005
Posts: 228
Re: Question for the technical analysts

Markov property supposes a stochastic process, i.e. a random function. And we're back to the random walk of Burton Malkiel and the famous answer of Buffet. If the markets were random said Buffet, why am I so rich and he is so poor ! Indeed the issue is that most TA people believe (rightfully or not) that prices are not random. And most trend followers try to take advantage of that non randomness.

Anyone who has ever traded knows to let the winners run (non randomness expressing that winners will be bigger winners) and to cut the losses short (non randomness expressing that losers will be worse losers). They also know that losers average losers and that catching a falling knife always hurts, etc... all that is the rationale for trading, i.e. the non (total) randomness.

Of course, one can think the markets are random and decide not to trade (often based on TA), nor to actively invest (selecting stocks based on FA) and decide to throw darts on charts or listings as the best decision process. The latter often resort to passive index investing (with some success).

My two cents, not being a specialist of Markov processes...
gnoti seauton
poyet is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Maternity coverage question skyline Health and Early Retirement 12 05-02-2007 06:31 PM
How to answer questions. ???With a question or assignment????? dex Forum Admin 2 02-25-2007 07:56 AM
Question for the Men of all ages. My Dream Other topics 46 10-24-2006 10:21 PM
From technical to management position Aaron Young Dreamers 24 07-16-2006 08:17 PM
Audio Question Bob_Smith Other topics 10 12-31-2004 03:42 PM


All times are GMT -6. The time now is 03:16 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.