Stock Market as a conversation

Written: March 7, 2020 at 9:59 PM
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Stock markets are (theoretically (An Introduction to Complex Adaptive Systems)) a visualized expression of all participating trader's emotional pulse of the market. Because money is a scarce resource, parting with it means the trade was of value to the person who traded it.

So, when a stock chart is going up, it means the stock is of value to the person who bought it. Conversely, when it is going down, the value of that stock has diminished in the eyes of the traders and so they sell the stock to retain as much money as possible.

Because there are so many people participating at once, the stock market is a reflection of the collective emotions of everyone participating. The tension (Yin and Yang balance everything) of the buy/sell mechanism is a form of communication all participants (and non-participants) can "listen" to.

The conversations that occur around that gleaned information then influences how traders make decisions about what and when to buy and sell. Therefore, a feedback loop is created. It follows the Chris Crawford conversation model.

  • The stock market speaks to us, and we listen.
  • We process that information - collectively having monetary discussions.
  • We then speak to the stock market though our buying and selling.
  • The market responds to those buying and selling with a change in the graph.
  • Repeat.

Buying and selling are the verbs (Game Verbs Guide Player Actions) we use to converse with the stock market.

Citations

#communication #toolong