Rationality or irrationality of the market
I have read this kind of thing here and there: "The market can stay irrational longer then the trader can stay solvent." That depends on what you mean by rational. If you add all the variables to any equation and compute them, you will have the answer. So if you add all the things thats happening and that people are doing that affects price and compute that, then you have the answer to what is going to happen the next tick and so on. That IS rationality, in a way. Then it might seem stupid, or something, but it is what it is.
I have read this kind of thing here and there: "The market can stay irrational longer then the trader can stay solvent." That depends on what you mean by rational. If you add all the variables to any equation and compute them, you will have the answer. So if you add all the things thats happening and that people are doing that affects price and compute that, then you have the answer to what is going to happen the next tick and so on. That IS rationality, in a way. Then it might seem stupid, or something, but it is what it is.
My signature is: "Classified".