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The stock market isn't just a purely random game though - it's based on the expected earnings of the companies, so if you can come up with a better estimate tha
by makomk 10y ago
The stock market isn't just a purely random game though - it's based on the expected earnings of the companies, so if you can come up with a better estimate than everyone else by combining information better, you can make money. The reason it's hard for humans to make money this way is because everyone else is doing the same thing, so any advantage is short-lived.
- scotty79 10y agoPseuodo-random generators are not purely random - they are based on a seed and an algorithm. For stock market nobody can have a clue what the algorithm is and what meaning the seed has in it. The reason nobody can predict the next value is that at some point something unpredictable happens that can wipe out all your previous gains and some more. Market can remain insane (meaning not behaving according to a model) longer than you can remain solvent.