A Distorted View of the Market

Discussion in 'Psychology' started by ProfitTakgFool, Aug 1, 2008.

  1. lol this site is unreal.

    Let me tell you something pal. If This is the case, UAUA was a good buy at 15, 10, 9, 8 , 7 6 5

    TMA straight to .20

    Homebuilders, financials, BSC, value investing.



    Where do I start off lol?

    You want statistics? Talk to the geniuses at LTCM. The guys making money in this market don't stand infront of the train. They hop on and go for the ride.
     
    #11     Aug 1, 2008
  2. You're missing a very important point. The sample size of UAUA, BSC, Enron, WCOM, and all the other dogs out there is <b>ONE</b>. The sample size of the S&P 500 is 500. Anything over 30 typically makes a good sample size but the bigger the better. The reason the ER2 and NQ move more wildly, relative to the S&P, is because the NQ has 100 companies in it, many with low volume, and the ER2 has 2000 but they are tiny companies that do next to no daily volume (compared to the S&P) so the swings of those individual stocks are wild. A larger sample size and larger volume reduces variation and standard deviation.

    Hey, and what's up your ass anyway. Are you hunting me down so you can rip everything I post LOL. Dude, you're getting worse than highlifejoker.

     
    #12     Aug 2, 2008