75% of the price movement in most stocks takes place in 20% of the time.The rest is notingbut noise withing a range.Relevant information that causes repricing doesn’t change quickly and frequently.This is why trends exist .Higher prices often attract more buyers and lower prices attract more sellers untull the rules of the game change.Focus on the main drivers and forget the rest.
Archives of “price movement” tag
rssNoise
75% of the price movement in most stocks takes place in 20% of the time. The rest is nothing but noise within a range. Relevant information that causes repricing doesn’t change quickly and frequently. This is why trends exist. Higher prices often attract more buyers and lower prices attract more sellers until the rules of the game change. Focus on the main drivers and forget the rest.
Vision
Vision – Although an expectation of total clairvoyance as to future price movement is unrealistic, it is my goal as a trader to assimilate as much information as possible with the goal of playing out scenarios that tie in with each other.
This is not always easy to do. Yet, understanding trading does not occur in a vacuum, and markets do exhibit oddities. You can get yourself mentally prepared to deal with these outlier events. Those who can think for themselves and need not rely on templatized news releases for their ideas usually put themselves in a position to benefit from their forward thinking.
We have heard many times about leaders who saw an industry trend before it happened. This was no accident. It came as a result of their understanding of their field and what could change it for the better. Traders who gain an understanding of how things can potentially play out and factor that into their trading strategy go a long way toward keeping their objectivity when things unfold in a fast and volatile market.
Noise
75% of the price movement in most stocks takes place in 20% of the time. The rest is nothing but noise within a range. Relevant information that causes repricing doesn’t change quickly and frequently. This is why trends exist. Higher prices often attract more buyers and lower prices attract more sellers until the rules of the game change. Focus on the main drivers and forget the rest.
Missed Opportunity!
Opportunity, is not defined solely by the market and its movement. It is also a function of your trading signals and the ability of those signals to detect a positive expectancy in future returns.
If movement were opportunity, there could be no random price movement!.
Vision
While total clairvoyance as to future price movement is unrealistic. It is my goal as a trader to assimilate as much information as possible with the goal of playing out scenarios that tie in together. It’s not always easy to do, yet understanding trading does not occur in a vacuum and markets do exhibit funny things get you mentally prepared to deal with these outlier events. Those that can think for themselves and need not rely on templatized news releases for their ideas usually put themselves in a position to benefit from their forward thinking. We have heard many times about leaders who saw an industry trend before it happened. This was no accident. It came as a result of their understanding of their field and what could change it for the better. Traders who gain an understanding of how things can potentially play out and factor that into their trading strategy go a long way to keeping their objectivity when things unfold in a fast and volatile market. |
NOISE
75% of the price movement in most stocks takes place in 20% of the time. The rest is nothing but noise within a range. Relevant information that causes repricing doesn’t change quickly and frequently. This is why trends exist. Higher prices often attract more buyers and lower prices attract more sellers until the rules of the game change. Focus on the main drivers and forget the rest.