Eman93
4,750 posts
msg #78038
- Ignore Eman93 |
8/26/2009 10:48:35 PM
TheRumpledOne
- Ignore TheRumpledOne 8/26/2009 6:03:23 PM
"Think about the stock market, which is a classic example of a "random walk," since the past movement of any particular stock cannot be used to predict its future movement. The inherent randomness of the market was first proposed by the economist Eugene Fama, in the early 1960's. Fama looked at decades of stock market data in order to prove that no amount of knowledge or rational analysis could help you figure out what would happen next. All of the esoteric tools used by investors to make sense of the market were pure nonsense. Wall Street was like a slot machine."
Pg 67 - HOW WE DECIDE
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Human patterns of actions and reactions are predictable..........
Good companys with bright futures price goes up....earnings and growth....that drives price .....they are atractive investments.....predictable.
Fundimental changes of the future potental of the company to earn more and it will continue on its way up, AIG good example, dosent matter if you belive it or not the market is never wrong........LOL
Why do stocks run after an upside break out from price consolidation? Everyone is buying and the shorts are covering on the break out......pretty predictable. The hard part is being there at the right time and the right place.
Milk the COWS is the same thing shorts covering above the open longs buying above the open......pretty predictable.
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