Game Theory

Every human interaction, every sport, every move is a game… including FI in Bahrain to mat rempit on KL road, World Cup in Africa to kicking balls at the backyard, getting kids to wake up in the morning for school, to off-shoring an entire division from America to China.

I was first attracted to World Cup not because of some macho men playing balls, but the strategies behind the game.  Last week, one future guru told me that, the key to trading is not fundamental or technical analytics alone, but understanding the game theories.

According to Wikipedia, Game theory attempts to mathematically capture behavior in strategic situations, in which an individual’s success in making choices depends on the choices of others. 

Likewise in every game, fear, greed and uncertainty are three greatest emotions that govern individuals and therefore influence his/her move. The key to winning in a game is raising above these emotions.

I don’t know much about game theory yet, but it is definitely an interesting subject to explore.

[Via http://stzegarden.wordpress.com]