The player that is using better strategy could (and often does) still lose though. Edges can be quite small and only expose themselves over thousands of hands. — BitconnectCarlos
Fair point. Also, Metaphysician Undercover, where do you draw the line between trading and investing? Seems you could apply the same logic you've used to condemn anyone who puts money into a market with the intention of later taking it out at a profit (and note that markets aren't zero sum games when they are expanding). — Baden
This little bit of winning produces a euphoria in the player making the person more oblivious to the facts, which are that the probabilities ensure the more skilled will win in the long run, just like the probabilities are slanted for the house in the casinos. That's the emotional weakness, similar to dreaming about winning the lottery. — Metaphysician Undercover
And as a trader you would know that the small money is made when the market rises, and the big money is made when the market drops. — Metaphysician Undercover
Traders can make money either way. Insane amounts of money are made when markets are volatile. — BitconnectCarlos
Also a lot of players are just playing to have fun or pass time, not necessarily to win money. — BitconnectCarlos
This I would question. Traders can make money either way. Insane amounts of money are made when markets are doing well. — BitconnectCarlos
I agree that traders make money either way, but this is why I think more money is made for them on the down swing. The first premise is that the money is actually received from the sale. The second is that the trader will most likely continue in the occupation of trading, so there will always be the need for a purchase after a sale. So if the market is in a generalized upswing, the purchase after the sale will likely be higher relative to the sale price, then if the market is in a generalized downswing, thus more money is actually pocketed in the downswing. — Metaphysician Undercover
More like insanity, because you are shorting on how crazy people can be. And they can be far more crazy and for far longer than you can anticipate.I guess the way to avoid this is to just sell everything prior to the crash and go full on short which is either genius or insanity at the peak of a bull — BitconnectCarlos
Some indicators like what I and ↪Benkei discussed like Margin debt growth are good in this case. When that Margin debt growth starts to decrease at the height of the market, that is really an alarming signal, because it means that people aren't willing to speculate as earlier. Both in 2000 and in 2008 the decrease in margin debt happened just before the stock markets plunged. — ssu
Last year is a good example of how trillions put into the most massive QE do have an effect to make the market and the real economy go their separate ways. The only "V"-shaped recovery was the stock market. Of course you can think that this is just the "new normal" and things have changed, that we have a new economy, but at least I'm not so sure.There are many instances when margin growth slows, where the market continues an upward trend, or it makes a slight coinciding dip then continues upward. 2020 provides a good example. — Metaphysician Undercover
Front-running is trading stock or any other financial asset by a broker who has inside knowledge of a future transaction that is about to affect its price substantially. A broker may also front-run based on insider knowledge that his or her firm is about to issue a buy or sell recommendation to clients that will almost certainly affect the price of an asset.
This exploitation of information that is not yet public is illegal and unethical in almost all cases.
Get involved in philosophical discussions about knowledge, truth, language, consciousness, science, politics, religion, logic and mathematics, art, history, and lots more. No ads, no clutter, and very little agreement — just fascinating conversations.