Fooled by Randomness - Nassim Taleb

This quote was added by nkjdhf
If rational traders detect a pattern of stocks rising on Mondays, then, immediately such a pattern becomes detectable, it would be ironed out by people buying on Friday in anticipation of such an effect. There is no point searching for patterns that are available to everyone with a brokerage account; once detected, they would be self-canceling.

Train on this quote

Rate this quote:
3.4 out of 5 based on 14 ratings.

Edit Text

Edit author and title

(Changes are manually reviewed)

or just leave a comment:

bvw 5 days, 7 hours ago
I agree, this is muddle heading modeling by Talib. There are patterns, they are like waves and change.

I hate day trading and long for the days of stock certificates: they were real values, owned. Not like today where we investors don't own anything, the Clearing House company owns the many trillions of nominal value stock shares in trade accounts. In any case, time delays in transfers would make the markets less foolish, and better evaluations of "intrinsic" value.

There are different forms of traders, they operate on different timings. There is no instant counter-reaction to the emotions of a string of Mondays, any ironing out takes weeks.
kumagai 1 year, 9 months ago
Not really. Everyone is looking for different setups. And markets also move fractally across timeframes, so the setups are endless. You just have to know your edge.

Test your skills, take the Typing Test.

Score (WPM) distribution for this quote. More.

Best scores for this typing test

Name WPM Accuracy
user491757 134.98 98.3%
venerated 131.23 98.9%
alliekarakosta 130.52 98.0%
user871724 125.76 91.8%
feuv 122.37 96.9%
mrlazav 122.35 95.8%
strikeemblem 121.00 99.4%
hackertyper492 120.66 91.8%
rivendellis 116.86 98.0%
penguino_beano 116.86 93.8%

Recently for

Name WPM Accuracy
user100406 64.34 91.3%
user389952 45.39 92.8%
bvw 33.65 90.6%
raholiver 77.47 94.5%
rivendellis 111.95 95.1%
kopez 68.87 96.4%
ccr712 56.12 92.5%
erasxed 71.11 93.8%