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Tuesday, December 19, 2017

Stock Market Is Not Physics Part III: Don’t Believe in Cause and Effect


Vantage Point Trading http://ift.tt/2CGDkfX

Trading would be a lot simpler if the stock market acted according to physical laws, like action-and-reaction and gravity. Unfortunately, it doesn’t. This investing article series looks at myths related to applying physical constructs to stock market movements. Part 1 looked at trend extrapolation, and the problems it can cause. Part II discussed the problem of trying to apply action-and-reaction to the stock market. Part III, below, looks at the issues that arise trying to…

The post Stock Market Is Not Physics Part III: Don’t Believe in Cause and Effect appeared first on Vantage Point Trading.

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