Hello, I was just reading something on Wikipedia, about quantitative analyst in trading, and some expert on it Emanuel Derman, who worked for Goldman Sachs for more than 10 years, gave this quote:
"In physics there may one day be a Theory of Everything; in finance and the social sciences, you’re lucky if there is a useable theory of anything"
I think that the sentence does not have any sense, if he believes that maybe one day, we will find the Theory of Everything (Albert Einstein Died trying do discover that theory, and the more recent work about it, is the String Theory)
Well, what do you think is more complex, to find a theory that explains you everything with 100% precision about the universe, or to find a theory that explains you everything with 100% precision about how the markets moves?
We invented the markets, LOL, why can’t we know with 100% precision to where it is going to move?
I think like in everything in the universe, there must be some kind of law, that can give us exact precision of what’s going to happen in the market.
I definitely don’t believe it can be done, by using a stochastic indicator, or any indicator of that kind, I’m more a believer of the supply and demand theory, which if you think, is directly connected to Peoples Psychology, they are the ones that move the market with their brains.
Think of a Serial Killer, LOL, when he kills, he almost always leaves evidences and the body of the murdered guy, the way he was killed can lead the cops, and the forensic guys, to trace some kind of profile of him, know what influences him to kill, and the way he kills
The market should not be any different, its people that are driving it, we should also be able to trace its profile.
Am I, 100% out of my mind, or what I have written has some logic (not that it is something of new)
"In physics there may one day be a Theory of Everything; in finance and the social sciences, you’re lucky if there is a useable theory of anything"
I think that the sentence does not have any sense, if he believes that maybe one day, we will find the Theory of Everything (Albert Einstein Died trying do discover that theory, and the more recent work about it, is the String Theory)
Well, what do you think is more complex, to find a theory that explains you everything with 100% precision about the universe, or to find a theory that explains you everything with 100% precision about how the markets moves?
We invented the markets, LOL, why can’t we know with 100% precision to where it is going to move?
I think like in everything in the universe, there must be some kind of law, that can give us exact precision of what’s going to happen in the market.
I definitely don’t believe it can be done, by using a stochastic indicator, or any indicator of that kind, I’m more a believer of the supply and demand theory, which if you think, is directly connected to Peoples Psychology, they are the ones that move the market with their brains.
Think of a Serial Killer, LOL, when he kills, he almost always leaves evidences and the body of the murdered guy, the way he was killed can lead the cops, and the forensic guys, to trace some kind of profile of him, know what influences him to kill, and the way he kills
The market should not be any different, its people that are driving it, we should also be able to trace its profile.
Am I, 100% out of my mind, or what I have written has some logic (not that it is something of new)