Price Action over Fundamentals!!! 👨‍🏫Like and share this page with your friends. http://bit.ly/2IblW9d 💥Follow our Website news feeds at http://feeds.feedburner.com/BOBrokerReviews 📊Download Free PDF document for trading basics http://bit.ly/2UfNlLh Many newcomers to binary options never question this assumption, which is a disaster. To understand why think of three of the many events that this theory is unable to explain: What happens today? Even if there were a direct, unbreakable connection between a company’s business and its stock price, how would this knowledge help you invest today? If you knew that stock A will be trading higher than today in three years, what does that say about the performance in the next hour or the next day? Even the best stock in the world has down days. For short-term trading long-term developments are meaningless. Price action can help you answer these questions. How far will an asset rise or fall if good or bad things happen? Again, let’s assume that there is a direct connection between an asset’s price and fundamental influences. Now assume that there is a positive surprise. You might predict that the asset’s price will rise, but how far would it rise? For how long? Fundamental analysis is unable to answer these questions; only price action can help you. Often the market falls in reaction to bad news. There have been many situations when the market has fallen in reaction to positive events and risen in reaction to negative events. Why? There is no logical connection between both events. The problem with using fundamental factors to predict market movements is that these connections only work in hindsight. Once the TV analysts know that a stock fell today, they believe that it must have been because of a specific event. But on the morning of the same day, it would have been impossible to predict which of the many, many events of the day will influence the market the strongest and how this influence will unfold. #NMBO440

Price Action over Fundamentals!!!

Like and share this page with your friends.
http://bit.ly/2IblW9d

Follow our Website news feeds at
http://feeds.feedburner.com/BOBrokerReviews

Download Free PDF document for trading basics
http://bit.ly/2UfNlLh

Many newcomers to binary options never question this assumption, which is a disaster. To understand why think of three of the many events that this theory is unable to explain:

What happens today? Even if there were a direct, unbreakable connection between a company’s business and its stock price, how would this knowledge help you invest today? If you knew that stock A will be trading higher than today in three years, what does that say about the performance in the next hour or the next day? Even the best stock in the world has down days. For short-term trading long-term developments are meaningless. Price action can help you answer these questions.

How far will an asset rise or fall if good or bad things happen? Again, let’s assume that there is a direct connection between an asset’s price and fundamental influences. Now assume that there is a positive surprise. You might predict that the asset’s price will rise, but how far would it rise? For how long? Fundamental analysis is unable to answer these questions; only price action can help you.

Often the market falls in reaction to bad news. There have been many situations when the market has fallen in reaction to positive events and risen in reaction to negative events. Why? There is no logical connection between both events.
The problem with using fundamental factors to predict market movements is that these connections only work in hindsight. Once the TV analysts know that a stock fell today, they believe that it must have been because of a specific event. But on the morning of the same day, it would have been impossible to predict which of the many, many events of the day will influence the market the strongest and how this influence will unfold.

#NMBO440

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