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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: David Wright who wrote (10597)	5/1/1999 10:59:00 AM
From: Casaubon	Read Replies (1) \| Respond to of 14162

OT If it was the case that "The market is a zero sum game", then there would be no such thing as progress. If you think of the sum total of wealth that exists in the world, at any given moment, as the stored energy of work that has has been accomplished, it becomes quite evident that wealth is indeed stored and accumulated over time. The process of creating and storing wealth is accelerating due to the population explosion. Of course wealth accumulation is not a static occurrence because some wealth is destroyed (war?). But sometimes, even war (destruction of wealth?) is wealth sparing, in that more wealth might be risked or destroyed if war did not mitigate a potentially greater violence (world war?). This is an overly simplified statement to point out that wealth accumulation is in fact a reality, and as such, statistical analysis may in fact have some predictive capacity. If the market was zero sum gain, and random, it would not trend higher (wealth accumulation) over time. You are correct, I believe, in assessing little, if any, value in AMZN TA.

To: David Wright who wrote (10597)	5/1/1999 11:57:00 AM
From: jebj	Respond to of 14162

>The market is a zero sum game. I seem to remember a lengthly discussion a few months back on this subject - maybe another borad. >It works, because we think it does. And isn't it amazing! One can take any stock at any time of a "typical" - if there is such a thing - day in the market and the stock is going to bounce off the lower or upper BB! Why? Could it be because a very large number of people have been programed that it will do so? >Also, I've read the "bible", and about 20 other great books, including McMillan's tome, which is currently causing great dents in my forehead from falling asleep with it. GREAT book - even better sleeping pill! :) jb

To: David Wright who wrote (10597)	5/1/1999 12:27:00 PM
From: Herm	Respond to of 14162

You are not really off topic since this forum has been a people watcher. We watch and listen to what works and we watch and listen to what does not. That is the nature of a case study. :-)

To: David Wright who wrote (10597)	5/1/1999 2:58:00 PM
From: Jon Tara	Read Replies (1) \| Respond to of 14162

"I believe very strongly in it as a way of predicting human behavior, but not as a valid statistical tool to predict how a stock's price is going to behave." Can we not use statistical tools to study and predict human behaviour, though? I'd argue that TA is a valid statistical tool to predict how a stock price is going to behave. It works because it is measuring human behaviour, which is to a degree predictable. Does it matter that some users of TA don't see beyond the stock price, and realize this? I think it does help to realize this, but I don't think it's necessary for success. "The market is a zero sum game." The market is NOT a zero-sum game! If it were, the Dow would be at 100! "I would certainly challenge anybody that tried to tell me that fundamentals have anything to do with changes in Amazon.com's stock prices." Now THAT I will agree with! :)