|
|
|
|
|
|
|
than the "informationless" customer. In addition, insiders and institutions had access to secret markets where they conducted their own business at prices never reflected on Nasdaq. A major source of internal market information is recent price movement. This is why one trading axiom is that your last trade or most recent source of information is the genesis of your next trading decision. An entire school of theory believes that all the history of a stock is reflected in its current price. According to this theory the technical charts and the fundamental analysis of a company's future have all been reflected in the pricing mechanism. |
|
|
|
|
|
|
|
|
You will want to understand technical and fundamental analysis of stocks and markets. Remember that analysis of what happened in the past is an indicator of what may happen in the futurebut it may not be relevant in the very short term of intraday trading, which is based upon seconds and minutes and not weeks, months, fiscal quarters, or years. In other words, your analysis may be superb, but the intraday market may not agree with your sense of timing. Understanding various valuation methods for predicting stock prices is not imperative for success at Direct Access Electronic Trading, but, like chicken soup, it can't hurt. A trader's education is a continuing process where self-improvement is better than self-stimulation. |
|
|
|
|
|
|
|
|
Technical analysis concerns price forecasting using methods based upon a study of price itself as opposed to the underlying fundamental (economic) market factors. Technical analysis is normally contrasted to fundamental analysis. Technical analysis looks at the interpretation of historical price charts in order to perceive support and resistance price levels from historical data. Direct Access Electronic Traders sometimes use technical analysis as a predictor of support and resistance |
|
|
|
|
|