sumguytang's wife

Measure, Don't Model: The Forest and the Trees

I'm a beginner in understanding the markets, and equally a beginner in complex mathematical concepts, let alone the terms used to describe those concepts. I almost abandoned this article after reading the caution at the beginning, but taking the admonition to tolerate the jargon and pay attention to the concept to heart, I slogged ahead.

Did I get the concept right? You are saying it is difficult to model any string of days even though the days themselves might conform to some model because the days act independently, and you can have bizarre actions in a single day regardless of the overall trend? In addition, you can have a string of bizarre days in a row.