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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 256.75-0.8%10:30 AM EST

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To: Eric K. who wrote (4369)8/10/2000 6:24:07 PM
From: AK2004Read Replies (1) of 275872
 
Eric

re: not necessarily because of inherent laws governing stock prices, but due to how many traders believe such laws exist.

Unfortunately, the only basic law in market is that the price equal to the price or $=$. So if we know that TA governs the market then TA becomes a law. The only problem with TA is that since the ones who does not follow TA's would probably gain in the long rang you can not even call ta a zero zero game. So TA's loose on average but meanwhile it generates extra volatility ...........
I assume that some ta's win but, imho, it is simple luck.

Now, you have mentioned stochastic modeling (Brownian) which is a very popular thing nower days. It make some sense in bond valuation even though that no one goes far enough to develop really nice sophisticated process for long term projections. For individual stocks it is like developing a formula for human emotions and would be just as bad as ta.

Regards
-Albert
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