Why does price move the way it does?

Discussion in 'Trading' started by Port1385, Jan 18, 2009.

  1. Price does not move up and down on news. It just moves by itself for no particular reason. All we can do is look at it on a chart and take an educational guess as to direction and then hope we are right.
  2. ammo


    why does wind speed change,why does rain fall heavy ,then light,then stop,then pour again,we are limited in our ability to understand all things,trade what you know
  3. Price moves so as to make all of your educated guesses wrong.
  4. Basically price moves from one "area" to the next "area" to reflect current news, data, etc..

    The road to get from one level to the next is filled with tons of noise as lots of trades for various reasons are made.
  5. ammo


    i think the large money is invested in one direction,their brokers plant seeds along the way,i.e.merrill moves from hold to buy on xyz stock,xyz goes up they move from buy to hold,then hold to sell,so those seeds cause small rallys in bear markets or small selloffs in bull markets,there is a constant sell or buy media program going on,with inside info you might know ahead of time about the AA earnings or employment #,but overall it's important to know what the big money's position is because 9 times out of ten ,the bigger moves will be in there favor. This notion of trend will give you some insurance against the worst case scenario,something to always have in the back of your mind,overall its still money management that wins,first follow money management,then follow or fade trend
  6. chartman


    Price has no relationship to stock value in the short term. It is all manipulation. Searching for stops by MMs and specialists is the primary reason for daily fluctuations. Market reports and news can cause a temporary minor price movement so one must be aware of such sceduled announcements. Trends are not started by a one day price movement.
  7. YTEurope


    because of greed einsteins