Model 1: The Ecology of Markets

A System Diagram of the Major Market Relations.

The Market Ecosystem

In The Education of a Speculator, Victor Niederhoffer proposes that "... each futures and foreign exchange market is held together by a web of public, dealer, large speculator, and broker players interacting with each other and their market environment" (Niederhoffer 355).

Key Points:

The following table that shows the relations of typical ecosystems in the earth's biota:

Model 2: The Relations of Typical Ecosystems in the Earth's Biota

  Producer Herbivore Primary Carnivore Secondary Carnivore Decomposer
Tundra Lichen, reindeer moss Caribou,
Wolves, Arctic Fox Polar bears Low, microbes, effects of freezing temperature
Pond Algae, phyloplankton Zooplankton, crustaceans Dragon flies, mollusks Bass, trout Bacteria, fungi
Meadow Herbaceous, angiosperms Flies, bees, spiders Beetles, wasps Sparrows, crows, deer, ferrets Bacteria, fungi
Ocean Blue-green algae Amoebas, radiolarians Crabs, lobsters Tuna, swordfish, shark, turtle Barnacles, coral
Savanna Grasses, sedges, acacia trees Zebras, wildebeasts, impalas Cheetahs, hawks Lions, leopards, jackals Vultures, hyenas, bacteria
Market Public, government Dealer Large Speculators Large hedge funds Locals, vulture investors


Note: It is with the kind permission of the author, Victor Niederhoffer, that we publish this information. To purchase Dr. Niederhoffer's book, The Education of a Speculator, from, go to HFC's Book Shop.