Will trading become more random?

SanMiguel · Jul 26, 2010

Just been reading this article, which covers a little of the history of fundamental and technical analysis:
http://www.minyanville.com/business...s-rwt-emh-technical/7/26/2010/id/29311?page=2

As far as I see it, TA seems to be an easy way for many, excuse the pun, technically minded people to get into trading. More and more people seem to be taking up the TA challenge with brokers pushing their products, algos trading HFT strategies, quantitative analysts searching the market - doesn't this highlight a fact that trading could get more random in future?

William Waller · Jul 26, 2010

SanMiguel said:
Just been reading this article, which covers a little of the history of fundamental and technical analysis:
http://www.minyanville.com/business...s-rwt-emh-technical/7/26/2010/id/29311?page=2

As far as I see it, TA seems to be an easy way for many, excuse the pun, technically minded people to get into trading. More and more people seem to be taking up the TA challenge with brokers pushing their products, algos trading HFT strategies, quantitative analysts searching the market - doesn't this highlight a fact that trading could get more random in future?

Trading isn't random though.

Chartsy · Jul 26, 2010

i've always thought that markets aren't random, but are inconsistent.if that makes sense!

SanMiguel · Jul 27, 2010

William Waller said:
Trading isn't random though.

Debateable but let's assume they are non random now, what is the likelihood if this changing with the introduction and ease of trading/TA, misaaplication of TA, or a myriad of indicators giving different signals.

shadowninja · Jul 27, 2010

It would make things less random, surely, as everyone would be trading signals based on the underlying price. No?

gooseman · Jul 27, 2010

less random, more volatile perhaps? this is a huge can of worms

arabianights · Jul 27, 2010

I would love nothing more than more noise traders.

weakpunter · Jul 27, 2010

arabianights said:
I would love nothing more than more noise traders.

I have to second that, Random probably = Noise............Iam all for more noise, would
make my life a lot easier lol

SanMiguel · Jul 27, 2010

weakpunter said:
I have to second that, Random probably = Noise............Iam all for more noise, would
make my life a lot easier lol

Why, more volatile, give you more chance to enter an underlying trend?

arabianights · Jul 27, 2010

Personally a) Because more people doing really stupid trades you can take the other side of and b) More volume in the market should lead to more opportunities, even if that's only earning the spread.

weakpunter · Jul 27, 2010

SanMiguel said:
Why, more volatile, give you more chance to enter an underlying trend?

Yes , in so many words the more inefficiency´s that exist equates to more opportunity for me to get involved

Will trading become more random?

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