Huh, so what is trading?

Trading is a search problem; buyers search for sellers and sellers search for buyers. Buyers seek sellers willing to sell at low prices, and sellers seek buyers willing to buy at high prices. Traders must also find other traders who are willing to trade the quantities or sizes they desire.

The following axioms may appear as common sense:

1. Markets exist to facilitate trading. It provides opportunity to someone at all instants.
2. Trading takes most properties of a zero sum game. Some traders will always be manipulative to others.
3. They dynamic interaction between buyers and sellers, or supply and demand, is expressed through prices. Thus prices are a tool of discovery.
4. Prices also change to reflect new information arriving in the market.
5. The goal of a trader is to be spontaneous with the market.
6. The feedback loop process among traders indicates the spontaneous direction of market. Positive feedback occurs when higher prices attract more buyers, and lower prices attract more sellers; vice-versa for negative feedback.
7. Future prices cannot be predicted owing to the dynamic extraneous information entering in the market. Probabilities in the market are never absolute unlike in a game of cards.
8. Extreme events or once-in-a-generation-outliers may occur every couple of years.