The stock market is somewhat irrational these days

David18

David18

Major market-analysis websites repeatedly supply
the same explanations as to why stocks surge or plunge:

1. Surge: Investors are optimistic about covid-19 vaccine

2. Plunge: investors are worried about second wave.

I am not sure what are the forces behind such large up and down price shifts:
Are algo-trading systems responsible for this wild behaviour?
Is it a zig-zag behaviour of private investors?
Something else?

What do you think?
 
It has always been, fear and greed are illogical human emotions. The PPT (Plunge Protection Team) /Working Group on Financial markets probably has their team members and GIA ( General Artificial Intelligence ) working non stop to avoid globalized assimilation.
The corporations are looking for growth and security at the same time. TIME FOR THE BIG CONTANGO.


Akuma
 
many people have problem earning money from trading because they rationalise day in and day out, night in and night out.
and they couldn't sleep when they find market and their rationalisation are not in sync.

rationalising is only for professional talkers and writers.
for professional traders, rationalising should be deleted from the vocabulary. Traders just focus on the charts.


This is another foolish ( and conflicting ) rationalisation which has happened many times over the past few years.
In time of crisis, people buy gold ( and sell USD ).
In time of crisis, people buy USD ( and sell gold ).


Market is not irrational.
There is nothing wrong with the market.
Market is not having mental problem.
Market is always correct even if there are thousands of high frequency traders & manipulators & presidential twitt.
Respect the market and trade according to the chart.
 
Last edited:
David18 said:
Major market-analysis websites repeatedly supply
the same explanations as to why stocks surge or plunge:

1. Surge: Investors are optimistic about covid-19 vaccine

2. Plunge: investors are worried about second wave.

I am not sure what are the forces behind such large up and down price shifts:
Are algo-trading systems responsible for this wild behaviour?
Is it a zig-zag behaviour of private investors?
Something else?

What do you think?
More...

Loose the mainstream media narratives. If you want to trade the stockmarket, the last thing you want is CNBC, Bloomberg and other news outlets to feed you disinformation and lies. They are there not to help you but, their corporate sponsors and hedge fund buddies? The only truism in the stockmarket is the big boys (hedge funds, mutual funds, banks, brokers) move the stockmarket and not the retail traders. "A man has got to know his limitations." That is from Clint Eastwood in his Dirty Harry movies. Still applicable to the retail traders of today.
 
smallfil said:
Loose the mainstream media narratives. If you want to trade the stockmarket, the last thing you want is CNBC, Bloomberg and other news outlets to feed you disinformation and lies. They are there not to help you but, their corporate sponsors and hedge fund buddies? The only truism in the stockmarket is the big boys (hedge funds, mutual funds, banks, brokers) move the stockmarket and not the retail traders. "A man has got to know his limitations." That is from Clint Eastwood in his Dirty Harry movies. Still applicable to the retail traders of today.
More...

right. anyway most news are totally not meant for day traders.
also news reporters work very very very slowly.
 
BAT31 said:
Someone, I don't remember who, once said that if the market were always correct, then prices wouldn't move.
More...

thats not entirely correct. Prices will adjust to fair value on new info immediately and stay there.
 
You must log in or register to reply here.
Back
Top