lets imagine everyone is a master trader...now what happens!?

#1
This is a pure imaginary scenario I was wondering !

if all the traders were top class who understands
crowd psychology, risk/money management, highly intuitive traders etc etc.

and the field is level playing i.e everyone has access to all modern technology for algo or highfrequency trading...

every trader knows what other traders know about strategies and tactics.

now what will happen :) !?

what will happen to bubbles?
how will the chart patterns will look like !?
will the terms like 'resistance' and 'support' mean anything in that case?


just wondering guys, for the sake intellectual curiosity ;)
 

SavantGarde

Well-Known Member
#2
Hi BSM,

Good to see you after ages and Congratulations on this new thread...!!!

If everyone was almost at par with each other....one thing that is definite, in such a scenario.....each one will make less than they did otherwise.

Charts...what they would Look like?? ...It would definitely be missing Volatility, Less Noise, perhaps Longer trending... in short a much smoother chart...:)
...yes...it would be far easier to trade with just one MA Line....!!!


SG

This is a pure imaginary scenario I was wondering !

if all the traders were top class who understands
crowd psychology, risk/money management, highly intuitive traders etc etc.

and the field is level playing i.e everyone has access to all modern technology for algo or highfrequency trading...

every trader knows what other traders know about strategies and tactics.

now what will happen :) !?

what will happen to bubbles?
how will the chart patterns will look like !?
will the terms like 'resistance' and 'support' mean anything in that case?


just wondering guys, for the sake intellectual curiosity ;)
 
#3
SG sir,

greetings to you!

i am going to surprise you ;)
what i think is: Nothing will change !!!!!!

Here is the reason:

once every one is playing at optimal level, a true master trader
will adapt a suboptimal stance and introduce noise, because
true master already knows the rest are going to take his noise trades
for clean MA cross overs ;)

so the arms race of faking and grabbing the profits will escalate
leading us back to the same place we are now ;) (as the other traders
are equally smart as our true master trader) ! :rofl:

This insight came when i was learning about poker :)

May be the size of bubbles will be drastically small but there is no escape from quick bubbles forming and popping all the time !
 

TradeJoker

Well-Known Member
#6
when everyone is a master trader, how can there be longer trends, which master trader would take and hold a position on the wrong side of the trend.
the super master trader. who doesn't know how to spend his wealth.so just make loss in market, and enjoy :clap:
 
#7
This is a pure imaginary scenario I was wondering !

if all the traders were top class who understands
crowd psychology, risk/money management, highly intuitive traders etc etc.

and the field is level playing i.e everyone has access to all modern technology for algo or highfrequency trading...

every trader knows what other traders know about strategies and tactics.

now what will happen :) !?

what will happen to bubbles?
how will the chart patterns will look like !?
will the terms like 'resistance' and 'support' mean anything in that case?


just wondering guys, for the sake intellectual curiosity ;)

there will be no market for speculation.
trading ends , we have to find another job.:cool:
i think this is like a jungle full of lions but not a single deer
 
Last edited:

angira

Well-Known Member
#8
there will be no market for speculation.
trading ends , we have to find another job.:cool:
i think this is like a jungle full of lions but not a single deer
In Jungle one is the king(Lion) and other are small animals like deer, monkeys, etc.
this is the concept of Jungle.

If we imagine a jungle without animals like deer, monkeys... then also there will be
fight of Lions with Eachother for Existence. Also there will be some Winners & Loosers.

Market Concept can be change but it will never Stop...!!!

Angira...
 
#10
First thing there can never be such a perfect scenario. period.

With the things which you have mentioned, remains the same, then there would still be good trends in the markets.

For a very simple reason: Markets never change, it hasn't changed in the past centuries, so in future also it will not change.

There is a concept which is the truth: HISTORY REPEATS IN THE MARKETS.

HOPE, FEAR & GREED would still rule the minds of people, they will still make the same mistakes. There minds will still work the same way, as it has worked in the past.

This level playing field which you have mentioned, would move away from the equilibrium in a very short time. Within a short period of time this balance would be: IMBALANCED.

Markets would be the same again!!!!!!

If you know about metaphysics, all the people are born with the same intelligence, with the same qualities.

In spite of this, there is a concentration of wealth in few hands. Only some people continue to make money, while others loose.

So the conclusion is: over a short period of time, things would be back to normal, markets would be the same. People would keep on making the same mistakes. Some people would be taking home loads of money. Others would keep on loosing money.

My 2 cents

Best Regards.

iTrader
 

Similar threads

Broker Special Offers

Intraday Higher Leverage

Save up to 90% in brokerage and get higher leverage for intraday trades.

Name:Phone:
Email:City:
State:
Are you a day trader?