Are The Stock Markets Random?

All over the world wide web, you are going to come across loads of explanations as to why the stock markets are random. The motive of many of these assertions is to imply that technical analysis is bound to fail over a lengthy period of time.

At the crux of such explanations lies the efficient market theory / random walk hypothesis. You cannot beat the market consistently – this is a highly simplified explanation of the random walk hypothesis.

Recently, I came across an excel sheet that can generate a chart – just like the charts made by financial instruments every day all over the world; the peculiarity of this excel sheet is that it generates charts based on coin tosses. Press the appropriate tab in the excel sheet and the same sheet will produce open, high, low and close values – all based on coin toss probabilities.

Use coin toss open high low close.

I think some of the visitors will find this excel sheet highly informative / entertaining.

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