Tag: Pareto efficiency

Cover artwork (cover.png) for the article titled The Depths of the Market: Understanding Liquidity and the Order Book.

The Depths of the Market: Understanding Liquidity and the Order Book

In this third entry of the Understanding Market Mechanics series, we move beneath the surface of charts and candles into the bloodstream of the market itself: liquidity. From stop runs and iceberg orders to liquidity pockets, fair value gaps, price discovery, and reversion to the mean, this post explores how liquidity shapes every move. The market is not random—it is choreographed. Learn to read the current, and price stops looking like noise and starts speaking as a language.

10 min read
Cover artwork (cover.png) for the article titled The Invisible Balance: Understanding Pareto Efficiency, Markets, and the Zero-Sum Game.

The Invisible Balance: Understanding Pareto Efficiency, Markets, and the Zero-Sum Game

In markets, the 80/20 rule is more than a cliché—it’s the operating system. Pareto efficiency ensures that once an edge becomes visible, it disappears. The zero-sum nature of trading means every gain is another’s loss. To survive, it’s not enough to know the truth—you must anticipate what others will believe next, and act before they do.

9 min read
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