Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Eric P who wrote (10540)	11/1/2000 1:39:31 PM
From: Wayners	Read Replies (2) \| Respond to of 18137

I totally agree. To me the test of efficiency is in the charts. With 100% efficiency I'd expect every price move to be preceded by a gap up or gap down with no trades executed in between. The size and direction of the gaps would be 100% unpredictable. I also don't think prices would move or gap very often--only on real news not on supply demand imblance information. Efficiency would require achieving instantaneous price equilibrium and no supply/demand imbalances after new information is obtained. all would have to receive the same information siumulataneoulsly and all agree exactly on the what the new price should be. In reality it takes time and trial and error to determine where the equilibrium of supply and demand will fall and there should be oscillations around the right level before price finally settles down and balances (Samuelson Economics). Thats the reality and what we do is capitalize on those oscillations for profit because nobody can eliminate the trial and error period and supply/demand imbalances in a short period of time. Liquidity, float, varying pricing models all add to the inefficiency.