Larry Parr asked:
Copyright (c) 2008 Larry Parr
It has long been held that stock prices are random. How could they be otherwise when prices are set by tens of thousands of individual investors bidding prices up or down with no connection to each other?
The only problem with that theory is that we all know it’s a load of rubbish and you can prove it for yourself.
Take a child’s plastic protractor, the kind you can buy at any grocery store for a couple of bucks and place it on a high point or a low point on any stock chart you like. Now look at the 50, 60 and 70 degree lines.
How many highs and lows hit one of those lines precisely? How many trading ranges fit snugly between two of those lines? And when I say snugly I mean to the penny.
And while you’re at it look for chart gaps. See how often one of the three protractor lines I mentioned cuts through the middle of a chart gap. For many charts they cut through the center of 100% of all chart gaps.
How could any of that possibly be true if market pricing is random? How could any of what you’re seeing be true if there’s no rhyme or reason to stock pricing?
If you know anything about Fibonacci lines and ratios you know that high and low points on charts are often pinpointed to the penny by Fibonacci lines.
Again, how can any of this be possible in a totally random system?
The answer is obvious. It can’t.
That means the system isn’t random. That means there’s a pattern to the system. And if there’s a pattern to the system then it must be possible to detect that pattern and to make use of it. It must be possible to construct a mathematical formula that will predict stock prices at least as accurately as that child’s protractor.
Can you imagine what it would mean to you if you could see that pattern clearly, if you had that formula for your own? Can you imagine the riches that could be yours? It would be equivalent to having a crystal ball and seeing into the future.
As things stand now the vast majority of traders are merely guessing which way the markets will go. Oh, most of them convince themselves that they have valid reasons for their choices, but deep down in their heart of hearts they know that all they’re really doing is guessing.
That’s why the vast majority of traders lose money, or at best break even over the long run.
Is that true when it comes to your trading?
In other words, most traders treat the markets the same way they treat horse racing. Only when you bet on a horse race the betters have the courage and the honesty to call it what it is: gambling.
But if there really is a pattern to stock market pricing, and if that pattern can be defined by a mathematical formula, then making short-term trades on stocks would no longer be gambling. You would no longer be a monkey tossing darts at a list of stocks.
So how can any of this benefit you? How can you make money with any of this?
Start by admitting that you’re doing nothing more right now than guessing which direction stocks are going. Even if you guess right several times in a row you’re still doing little more than tossing mental darts.
Next, recognize that stock prices aren’t random and never have been. Recognize the fact that there IS a pattern to stock pricing even if you can’t clearly see that pattern just yet.
Finally, spend whatever time you must in decoding the pattern that defines stock prices. If you can break the code and find the formula that reveals the pattern, just think what that could mean to your future stock trading!
Because, ultimately, anything less and you’re just a monkey tossing darts at a list of stocks.
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Archive for the ‘Finance’ Category
New Discovery Leaves Stock Market Vulnerable
Wednesday, March 5th, 2008Things to Bear in Mind Concerning Courier Insurance
Monday, May 14th, 2007Stanley Headley asked:
There is always a misconception that running a courier business can eventually result in loss and trouble. This statement can’t be denied, if there is no proper preparation before starting a business. And at the same time, it can’t be true because, when the biggest corporate organisations in the world are carefully examined, one can easily find that the top notch corporate organisations made their way into those respective positions by offering courier services. Name it and you’ll find it. Take Blue Dart, for instance. This clearly shows that one does not have to end up in bankruptcy, because there are good opportunities and scopes for a business such as this. If a person happens to end up bankrupt because of a courier business, it clearly indicates that the person did not take the necessary safety measures to protect his or her finances.
Though the courier business offers a large scope to earn huge profits in the corporate world, it also has a negative aspect which, if not carefully addressed, can land you with huge unrecoverable losses. A courier business involves timely delivery of goods in the safest way possible. Any losses or damage that might occur are to be born by the courier agency. The goods can be anything – they may range from simple paperwork to important documents, and even may include live fragile deliveries such as birds or animals.
As the courier businesses deal with such important factors, it is highly advised that courier agencies purchase courier insurance for all vehicles they are using in their business. Courier insurance for your vehicle/s will be at your rescue when you find yourself in trouble. Keeping in mind the risks and huge complications associated with it, it often becomes a difficult task to purchase courier insurance. Even if one is able to find a suitable courier insurance agency, they can immediately notice that the services are offered at sky high premiums.
Despite the fact that insurance agencies offering courier insurance can be difficult to find, one can arrive at a suitable courier insurance agency if they research properly. Though the prices may be a little expensive, it is advisable to have courier insurance – because some insurance is better than no insurance. It is better to have insurance and not have to worry about being caught out without it. Paying your monthly premiums for courier insurance is much cheaper than paying for expensive damages to your courier or someone else’s if you are involved in an accident.
Courier insurance comes in plenty of versions and variations. Explore all the kinds of courier insurance before you decide onone. One courier insurance might be expensive, and with little features and benefits. Another courier insurance policy might be cheap, but the services offered might be the same as something more expensive. Upon further exploration, there is a possibility that you can find both a cheap courier insurance policy with the added benefits. It is also recommended to keep an eye on the changing trends in courier insurance policies. Keep track of the courier insurance policy trends because ‘a stitch in time saves nine’.
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Dallas Homeowner Insurance
Friday, September 15th, 2006G. M. White asked:
Dallas’s slogan is “Live Large, Think Big.” Indeed, it may have been a vistor to Dallas who coined the phrase, “Everything is bigger in Texas.” From the towering buildings of downtown, to the size of the portions you are served in virtually any restaurant in the Metroplex, people in Dallas certainly enjoy life to the fullest. With the recent revitalization of the downtown area and the construction of the DART light-rail, Dallas has become a renewed center of culture and arts, in addition to its long, uninterrupted traditions of commerce and exhange. Choosing a home in Dallas is an exciting prospect for many Texas residents, with many options available for a wide range of incomes.
Choosing the right insurance for ones home in Dallas is just as important as where you choose to settle down. Dallas may be known for its mild winters and hot summers, but those who have lived there any length of time have also become acquainted with the occasional hail and thunderstorms that can appear with little to no warning. Many Dallas residents may not be aware that they live in a floodplain-until it is too late. While those living in the Gulf Coast may now be well aware that home insurance policies do not include flood insurance in its scope of “hazard coverage,” Dallas home insurance policy holders may not be so aware.
Those shopping for home owner insurance in Dallas, Texas would be wise to thoroughly research the precise areas they live, or are interested in living. Even if the risk of certain disasters may be slight, one might find that the cost is surprisingly low for good coverage. Should the unthinkable occur, the cost will seem negligible in comparison to the peace of mind one may find in a time of great need. Knowing that your claim will be processed expeditiously with no setbacks or surprises is something you should be able to depend on your policy providing. Getting advice from an expert now can avert calamity in the future by making certain you have prepared against all contingencies.
Many home insurance agencies in Dallas Texas do not have the time or the care to thoroughly educate its customers about the limitations or scope of their home insurance policies, nor do they make their clients aware of all the options available to them. Determining the required amount of coverage to replace your home is one of the most crucial elements in purchasing homeowners insurance. The best policies, Texas HOA+, HOB and HOC should have the replacement cost endorsement that guarantees indemnification without depreciation should the home be damage by any of the covered perils. Most insurers require the home be insured to certain limits to qualify for the replacement cost coverage. It is very important that the insured know the amount of living area square footage in the home and have some idea of the rebuilding cost per square foot. Example; 2500 X $90.00 per square foot equals replacement cost of 225,000. Texas Auto Home Insurance promises to assist in determining the best solution for you concerning these very important insurance questions.
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