XFool wrote:odysseus2000 wrote:XFoolThis is true and necessarily so - given there actually is an established, and previously successful, theory.
Yes, but it’s not that useful in trading where everything changes all the time & one has to adapt & change with price action. Sticking with some thesis when price is going against you can get you killed.
That raises a thought I've had in the past: Traders are likely people who need a story.
That's been one idea I once had why - possibly! - I find traders a bit... well... eccentric? (Perhaps)
Traders want stocks that move, up or down, what traders don’t want is no movement. Most day traders will open & close positions each day & take no over night or weekend risk. For those who do accept such risk the one fear is that a stock gaps against you.
In trading you trade the price action, you do not trade on fundamentals or long term forecasts.
Regards,