Wednesday, August 17, 2005

Chaos in Markets

Traders, analysts, fund managers, and average day people all play the market. And tons of information and quantitative data flow continuously. Man, all this info gives me a headache. However, this concept known as chaos theory says there is order to this disorder. Do things really have a higher order of explaining these highly volatile fluctuations in various data? That's kinda like saying things are all predetermined... except it's too complex for a person to fully comprehend.
Sure, people have utilized fractal patterns, fibonacci sequence, calculus, and everything math and life has to offer to better explain chaotic behavior... and I guess that's why we should be thankful for the mathmaticians and scientist that study and explain these things to the laymen like us.
I'm the type of person that likes to understand concepts that's been thoroughly studied by some dedicated individuals and then apply the knowledge to however I see fit. Take for instance, people have analyzed music to where each note frequency can be seen as wave fluctuations like those in stock markets. They conclude certain frequencies allow scales to made simply because it sounds pleasing to the ear. I don't need to know every exact details to play what I am able to play.
My question is who is playing the music, and can anyone hear what's being played? And what kinda music is being played by the markets?


At 6:03 PM, Anonymous QUALITY STOCKS UNDER 5 DOLLARS said...

The market can play tricks on you.


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