… reports of stock market volatility, remember that little of it matters. Do not spend time being concerned about volatility.
Some White Top Investor lessons on stock market trading
Investing, trading, and speculating differ
Trading: an aggressive market play that chases profit
Momentum Investing – a trading play
White Top Investor lessons on high frequency trading
Wise …
… click on all White Top Investor Lessons
Money Making Courses
These White Top Investor courses are under development:
Banks, Credit & Debt
Effective Investing & Finance Research
Financial Independence
High Frequency Trading Explained
Market Mind
Market Monitors
Market Risks
Mind Games
Money Choices
Money Magic
Money Strategy Planning & Managing
Portfolio Building
Portfolio Management
Short Story Shorting Stocks …
… investors, myths and mind games the market noise can distract us. Distraction can include loud braying of self serving insiders who claim small investors cause volatility. Before high frequency trading existed, amateurs were tagged the emotional market swing goat. All such nonsense is useless market noise.
Daily trading reflects some amateur behavior. In markets, bad …
… have an equal opportunity to see and fill any order. In theory, you still get the most favorable price.
High frequency traders change the game
However, high frequency traders use technology to put themselves in front of you! To learn more about that related issue, see the White Top Investor lessons on High Frequency Trading …
… term trading market.
Trading is the fast lane of stock market plays when compared with the steady cruise that income investors take while steadily building wealth. Traders are often seeking a faster way to build wealth. That same drive motivates the creation of computer trading that developed into high frequency trading. That significant change in
… business and certainly a risky place to play with money!
Volatility
Cryptocurrencies wildly cycle through a huge range of prices which draws droves of traders, speculators and high frequency traders to add turmoil and more trading volatility. The constant and severe price fluctuations challenge users and merchants to make a deal fair to both sides …
… reason you invested in the stock changed, or have the company’s fundamentals or prospects changed? A temporary downturn might not warrant selling.
2. Stop-Loss Orders
Although stop-loss orders can limit losses, if jumped, they can be missed or triggered by short-term market fluctuations or the manipulations of high–frequency traders, making
… these biases can cause investors to buy high and sell low rather than the reverse, emphasizing the need for investors to learn how to manage their emotions.
High Transaction Costs
Timing schemes involve more frequent trading, which increases transaction costs, including brokerage fees, taxes, and the bid-ask spread, which is the difference between the …
… their returns. Whether it’s management fees, transaction costs, or other expenses, being blind to fees can erode gains and hinder long-term wealth-building.
3. Emotional Trading
Emotions such as fear and greed cloud judgment and lead to impulsive investment decisions. These decisions result in buying high and selling low, the opposite of what …
… exiting a position too early or late can significantly impact returns. Short-sellers must be adept at predicting market movements and acting swiftly.
Costs
1. Transaction Costs
Frequent trading means higher transaction costs. More trading costs reduce overall profitability. It’s essential to factor in these costs when evaluating potential returns.
2. Short Interest
High …