February 1, 2005
How Much Are You Paying Your Stock Broker?
And should you be paying that much?
A model that assumes stock market traders have zero intelligence has been found to mimic the behaviour of the London Stock Exchange very closely.Well, maybe, maybe not:
However, the surprising result does not mean traders are actually just buying and selling at random, say researchers. Instead, it suggests that the movement of markets depend less on the strategic behaviour of traders and more on the structure and constraints of the trading system itself.Whether you are going to throw darts, employ a broker, or make your own buy/sell decisions spend some time learning the basics! Posted by Steve on February 1, 2005
