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Trading has little to do with financial or economic models. And it definitely can be irrational. But it can be predictable if you can predict the behaviour of
by Mikeb85 5y ago
Trading has little to do with financial or economic models. And it definitely can be irrational.
But it can be predictable if you can predict the behaviour of other traders, because price is determined by supply and demand for the asset. The underlying value is a small part of determining how other traders will value it.