Your attitude towards charts is interesting and ma
Post# of 43064
Posted On: 07/31/2014 11:04:38 PM
Your attitude towards charts is interesting and makes no logical sense IMO.
If one does not believe in charts, they believe that markets are perfect. That is right... I am not going to try to quote theory verbatim and accurately but basically, in a perfect market, all information about a stock is known equally to all investors, therefore history does not matter. There is no momentum, statistics does not matter, etc.
In your view, charts have no place in OTC stocks because they are so heavily manipulated. In other words, because the market is so imperfect.
Makes no sense. JBII has gone from 5.oo to .09. That is a fact. It is not because of manipulation. Any manipulation will only have a short-term effect.
As an example, consider high-frequency trading. I was listening on the radio the other day as an author of a book gave a very good explanation of the phenomenon. It is not hard to understand. A trader sees a quoted for 100k shares available at $24. He enters the order... after the order entry the screen changes. He receives 52k shares at 24.00 and now the price is 24.01. What happened was that an intermediary intercepted the order on the network and entered an order of their own, which grabbed the rest of the shares before the original order could be executed.
Now, if what you are saying was true, the trader would simply blindly enter the same order at the new price. Says who?
Whatever his reasons were for wanting the shares at $24, the situation has now changed. He may not want the shares at the new price...
Such as with JBI. The price movements are due to changes in the intrinsic value. BY the fundamentals. Today's financial release is just another in a string of bad releases... and the reaction in the market is typical and directly related.
I believe in charts, in terms of helping with the timing of an investment decision. Charts and indicators have their role to play.
If one does not believe in charts, they believe that markets are perfect. That is right... I am not going to try to quote theory verbatim and accurately but basically, in a perfect market, all information about a stock is known equally to all investors, therefore history does not matter. There is no momentum, statistics does not matter, etc.
In your view, charts have no place in OTC stocks because they are so heavily manipulated. In other words, because the market is so imperfect.
Makes no sense. JBII has gone from 5.oo to .09. That is a fact. It is not because of manipulation. Any manipulation will only have a short-term effect.
As an example, consider high-frequency trading. I was listening on the radio the other day as an author of a book gave a very good explanation of the phenomenon. It is not hard to understand. A trader sees a quoted for 100k shares available at $24. He enters the order... after the order entry the screen changes. He receives 52k shares at 24.00 and now the price is 24.01. What happened was that an intermediary intercepted the order on the network and entered an order of their own, which grabbed the rest of the shares before the original order could be executed.
Now, if what you are saying was true, the trader would simply blindly enter the same order at the new price. Says who?
Whatever his reasons were for wanting the shares at $24, the situation has now changed. He may not want the shares at the new price...
Such as with JBI. The price movements are due to changes in the intrinsic value. BY the fundamentals. Today's financial release is just another in a string of bad releases... and the reaction in the market is typical and directly related.
I believe in charts, in terms of helping with the timing of an investment decision. Charts and indicators have their role to play.
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