I am regularly send odds and sods by various peanuts (usually economists) telling me what the market should and shouldn’t be doing. Unfortunately, they are making a fundamental flaw – the stockmarket is not the economy. The stockmarket is a pricing mechanism based upon the aspirations and perceptions of populations and these populations are not rational and never have been. This is why concepts such as the Efficient Market Hypothesis are rubbish.
All that matters is the trajectory of price and prices at present are heading up.
Totally agree with you on this one Chris. I’m actually studying economics as part of my degree at the moment but it doesn’t matter what I think, I’m gonna trade with the trend!
It is so hard to drag people away from the need to hear a story as to why something may or may not be happening and direct them to trade what is actually happening.
I think part of the problem is two fold. Firstly, our oral traditional of story telling means that we are primed for stories (we are also innately irrational) Secondly, the belief that information implies control and that if we have information we have control even over functionally chaotic environments.
Totally agree with you on this one Chris. I’m actually studying economics as part of my degree at the moment but it doesn’t matter what I think, I’m gonna trade with the trend!
It is so hard to drag people away from the need to hear a story as to why something may or may not be happening and direct them to trade what is actually happening.
I think part of the problem is two fold. Firstly, our oral traditional of story telling means that we are primed for stories (we are also innately irrational) Secondly, the belief that information implies control and that if we have information we have control even over functionally chaotic environments.