Sunday, February 22, 2009

DELAY in Market Moves


Markets delay the moves to frustate traders and force them out of their positions.

  1. Stock price delays moves. This is an important characteristic of the market. Price movement will not happen when you are anticipating it.
  2. Price moves when it is inconvenient for the trader.
  3. This is recently observed in EDUCOMP.
  4. The movement we think random may be in the scheme of things for traders on the other side.
  5. This is the reason why for active traders path dependence is important.
  6. If the stock price hits my stop before making the favorable move I am forced out of the position.

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