Do you see a incomprehensible, complex market when you sit down to trade? Or is it a simple song… music to your ears?

Many traders have strong views about whether the markets are incredibly complex or just a simple extension of the market participants (and this is usually reflected in how traders try to extract profits from the market).

If the market is too complex, how can we ever compete with the string theory physicists working for the banks and hedge funds?

And if the market is simple, what can we do to make sure our system doesn’t become too complex?

The answers are waiting for you in this podcast (ok, that was a joke… maybe not the definitive answers, but this episode will definitely get your brain working on the problem).

Also, you’ll hear what Darren believes is “pure madness” in the market and why Walter worries about traders who want to “be right.”

http://media.blubrry.com/2traders/content.blubrry.com/2traders/2Traders_-_EP28_How_Complex_Are_The_Markets.mp3

Download (Duration: 14:14 / 16.2 MB)

In this episode:

00:55 – The market is insanely complex

01:27 – Simplicity is the answer

02:50 – The market is made up of people

06:03 – A matter of perspective

07:07 – Perspective is important

08:10 – Understand everything

09:21 – Trying to predict

11:22 – The big short

12:29 – Perpetual Bull or Bear

Tweetables:

The market is a collection of humans, with ordinary emotions. [Click To Tweet].

You can learn to read the markets and trade profitably. [Click To Tweet].

A very complex strategy won’t necessarily give you an edge. [Click To Tweet].

Download The Full Episode 28 Transcript Here

Walter: To me, I don’t see why people feel like the market necessarily has to be complex. Now I think it’s not because, it isn’t complex and there are a lot of decisions that go into moving the price.

Announcer: Two traders, Darren and Walter, pull back the curtain on profitable trading systems, consistent money management, and profitable psychological triggers. Welcome to the Two Traders Podcast.

Walter: Welcome back to the Two Traders Podcast. I’ve got Darren on the line. How are you today Darren?

Darren: I’m really good Walter.

Walter: So we’re going to talk about this idea of the markets and how complex they are. I’d love to get your thoughts on these. We often hear things like “Oh, the market is so complex, people can’t understand the markets, they move randomly, can’t make money in the market, it’s zero in some game”. All these things like that, what are some of your thoughts on that?  

Darren: I think it’s insanely complex that’s probably why trading is so difficult. We’re trying a certain control of the market and we try and find pa...