The computing power of the market structure
Now we know that the market is an efficient machine for the distribution of funds between the parties.
Now answer the question: "why not create an algorithm, which is the Grail?"
Until now, no one could mathematically describe the market, so the creation of a stable trading system is not a feasible task. A mathematical model has not yet been created by the fact that the market can not take into account all the parameters changing, even if will be able to describe all conditions that affect the behavior of the price, then there will be new, which previously was not. I'll explain why. In the markets running a huge number of people, everyone pursues only one goal - earn. Every trader makes his trading system, someone sells haphazard, relying on his intuition, someone using technical analysis, some fundamental. The fact is that every day millions of participants sorted out all possible combinations of options trading systems that will help them earn. Some systems are primitive and are not viable, some are very complex. This can be compared with the method of simple search when you do not know your password and try to pick it up. Everyone is trying to pick up "key" to the market, the same password, which will take all the money.
Naturally in this case it involved very large computing power and energy calculation includes not only computers, but also the people themselves. The market can be compared to a distributed computing network, the problem is to find the key to itself. And then there is a problem! Participants choosing your password, do it to me! That is the key to market changes dynamically during selection. This does not mean that you can not make money on trading. Someone closest to the creation of the algorithm itself, and many people make good money, but the market is constantly changing, making the goal unattainable. Thus making the trading system - an endless process, it will never be fully established, it is necessary to continuously improve and only then we can earn. In trading you need to immerse yourself completely and live it!
It is for this reason that, in the long run, most lose money. Creating a system, they begin to use it, and it brings a profit, but at one point it ceases to be profitable, and many lose this moment.
It should be remembered that the whole system (the market) has an enormous computing capacity (people are also involved in the calculations) and goes through a huge number of combinations per minute. Merchants - alone have to confront the whole crowd. Naturally no one person can not generate trading systems with the speed with which it makes millionth crowd. And plus to all, one person means much less than that of the market as a whole. These 2 factors and lead to the fact that most will lose money in the markets.
In this case, the money market is not anywhere to go, there they both were, and have remained. They are gone over, they do not become less. You can not withdraw money from the currency market, exactly like put them there - the system is closed.
The man began to trade on the foreign exchange market - contributes to funds. But how did they get them? Earned! That is, it does not have the money, but using the spent energy (no matter what), he received a certain amount of (reduced entropy, or in other words to create a gradient of funds) in this market and now with the help of this share, trying to earn more (further reduced entropy, or create a gradient). And the more he earns, the greater the increasing gradient of funds in the market. Accordingly, each additional dollar becomes more difficult to make money on every additional dollar need to spend more energy. There comes a time when the energy required is greater than it is at the individual and he starts to lose money.
In the next article I will write what you need to do to change the situation ......
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