Venture into the world of speculative markets and you rapidly discover that using the orthodox methods & conventional tools of technical analysis is, at best, transiently useful and largely ineffective.
The explosion in technology has provided us with widely distributed, cheap computational power and has vastly increased our analytical capability; but that same advantage has been largely offset by greater market efficiency.
Currently, there are so many sources of information, that the signal-to-noise ratio (the ratio of useful, meaningful information to background noise) continues to plague traders & investors alike. Technical & fundamental trading methods continues to produce a vast army of noise traders -- those who are trading on noise as if it were information. And it's the ubiquitous presence of the noise trader in the marketplace that makes profits possible.
The Noise Trader Manifesto is an affirmation of a set of market principles which facilitates the ability to differentiate meaningful information from market noise and to exploit transient market inefficiencies. Read on... |
