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Showing posts with the label algorithm

Just my thoughts #0832

Compound Interest : Interest added to the original principal and its accumulated interest. Even if an asset’s price is too high or too low, it eventually converges to the market average . In fact, even with significant price volatility , it is only a matter of time before it aligns with the market average. However, there are occasions where it surpasses this average, and that’s when compounding becomes influential. Market prices reflect the actions of participants and the economic environment affecting their prices. Although sometimes distorted, they eventually revert to prices implicitly agreed upon by participants. But compound interest is a system specifically designed to outperform this market average. Interest can be monetary, but it can also be other economic effects or energy . By understanding and harnessing the power of compound interest , we can gain a significant advantage in our lives. - Joseph’s “just my thoughts”

Just my thoughts #0791

Stock prices fluctuate constantly. There are several reliable ways to mitigate stock price volatility: trading short-term gap price differences , buying and selling with momentum , or holding high-quality stocks for the long term until volatility averages out. When stock price movement is mathematically differentiated by time , the instantaneous price emerges —but humans cannot act in microseconds. In contrast, computers, with enhanced performance, can now trade at these speeds. Furthermore, by using artificial intelligence to analyze stock data, computers can reduce mistakes and trade algorithmically , unaffected by emotion. Still, even computers are limited if humans incorrectly input trading rules. Humans are not suboptimal investors due to a shortage of information or knowledge, but because they often fail to follow the necessary rules in each situation. - Joseph’s “just my thoughts”

Just my thoughts #0725

Algorithms are the foundation of how a system functions. A system is a large structure where each component is connected by a specific energy that forms relationships, and the entire system moves in a set direction. Understanding an algorithm provides insight into the system, how it operates, and its overall direction. However, creating an algorithm requires the system creator to take a risk and pay a price for the entire system. That’s why designing an algorithm isn’t easy, even though using one is simple. Once an algorithm is developed, system members become reliant on it. The way to break this reliance is to either discard the algorithm or develop a new one. Knowing which system you belong to and how it functions is extremely important. - Joseph’s “just my thoughts”

Just my thoughts #0072

With social media, we assume that we see and hear what we want to see and hear. But the truth is, we see and listen to what the system shows and listens to us. Uncontrolled systems distort inefficiencies and the purpose for which they were created. So the algorithm is loaded into the system. We do not enjoy freedom. It is only considered "free" in the context of control. - Joseph’s "just my thoughts”