To All FinTech People
I watched a video today about the stock market price changes depending on the different factors (but specifically math vs psychology). The matter of this video is to figure out whether the trading patterns described in hundreds if not thousands of books are actually valid in different environmental settings. For that, an athor of the video creates a stock market simulation:
Guess what, the findings are pretty crazy as it seems like the patterns are valid and can even be applied to random math numbers setting.
Although, there are two concerns that I have about this:
1) First and foremost, in the current world one person's decision can push prices so high up or so much down in a matter of hours. And big whales mentioned in the video can stimulate that process even further than it should have gotten. So, be minded even if pattern work, huge world-touching events can crash the market regardless (although pretty rare, but it happens more than it should have nowadays, especially if we look at a particular domain or company).
2) Second, if patterns really work that well in a somewhat stable market, then holy cow how much money people might be making today with this AI progress out here.
Anyways, this topic is interesting and some banks already offer (and it is been there even before 2022) some agentic profiles that are ran for you. BUT, it is the very early stage if what is described in the video actually possible in a much broader environent, like ours (we all live in simulation btw, so we can definitely test it out).
To conclude: learn technical analysis for stable markets and pray in unstable ones.