Sentences with phrase «fool theory»

I would just add, the greater fool theory works when there are a lot of fools around.

At some point, the music stops, the greater fool theory fails to find a greater fool, and companies start a mad dash to break even.

The greater fool theory states that the price of an object is determined not by its intrinsic value, but rather by irrational beliefs and expectations of market participants.

Furthermore, as in the case discussed above, wherein the trader holds a long position during positive bear power, you are betting on the greater fool theory.

Is the currently staggering price level of Bitcoin, which is to a great extent caused by hedge funds and other financial players buying Bitcoin at the moment, therefore just irrational speculation for profit as greater fool theory suggests?

«It's still a greater fool theory bet.

There's something called the «greater fool theory of economics», which sets forth the premise that the goal of investing or trading is to find someone who will pay you more for something than you paid for it — that makes them the «fool», although I don't think it is necessarily foolish to see value and opportunity in something that another person has missed.

The Greater Fool Theory Suggests that a person would buy something at a foolish price, expecting someone (a greater fool) to pay even a higher price.

«Since most cryptocurrencies are not actually backed by anything real, cryptocurrency speculation is based on the greater fool theory — I can buy this at $ 100 because there is someone who is a bigger idiot who is going to buy it at $ 200.

Or you could think of it as a version of the greater fool theory — you want to be sure there's at least one bigger sucker than you willing to buy your goodies when you finally get over your growing greed and decide that it's time to go.

The tech bubble was propagated on the same belief that drives any market bubble, the Greater Fool Theory.

But just like when any investment starts to run uncontrollably, the Greater Fool Theory can kick in for some or many investors.

The Greater fool theory is one of the most popular theories in the investing world.

In this case, we have a careful application of the greater fool theory.

Think like an owner A vast number of market participants acquire stocks based on The Greater Fool Theory.

Now, I'm sure you'll occasionally make money investing in bank shares, but their pro-cyclical nature always guarantees the next disaster's coming — you're really just trading on the greater fool theory.

a) The idiot investor has no idea he's in a bubble, b) the semi-smart investor kinda recognizes the bubble & the greater fool theory — he might get burnt, he might not, and c) the smart investor recognizes it for what it really is, and knows it's time to be a trader, not an investor, and make a killing.

Kind of like trading on the greater fool theory.

Just in time, it seemed, he cashed out in an art world example of the «greater fool theory,» with sorry speculators left holding the bag of his worthless gewgaws.

Thai turbine - terrorists, RATCH have also reacted with crazed panic; and have put everything up for grabs — clearly hoping to get out of a brewing financial collapse by way of the «greater fool theory ``, that vendors of toxic assets rely on when they're looking to ditch them in a hurry.

«You're hoping Bitcoin will be worth more in the future, otherwise known as the «Greater Fool Theory,»» said Ludwig.

Referencing «Greater fool theory» and uttering terms like irrational or tulipmania in the context of Bitcoin's amazing run is not entirely wrong.

My theory as to why Bitcoin Diamond is trading at such a high valuation is that there's always going to be a handful of traders that either are trading by the greater fool theory or are entirely oblivious to fundamentals when valuating Bitcoin hard forks (i.e. not understanding that the tenfold increase in supply means $ 31.6 per coin is actually equivalent to $ 316).