Skeeter Bug,
Short term trading, by definition, is over a period (the particular time frame used in the discussion on this topic that I was having with Barb, when you jumped in, was 5 minutes) where the economy cannot grow by any significant measure. Should I have spelled that out for you? Probably, so it seems now. <sigh>
BTW, when you use the terms trend and normal while talking about single data points, you again demonstrate your completely ignorance of statistics, which I have conceded long back. So, why are you reiterating that over and over?
Finally, suppose a business grows by 8%, 10%, 9%, 8% and 9% in 5 consecutive years. Using your method, one will conclude that the growth increased by 25%, -10%, -11% and 12.5% in these years. That is, the growth rate will appear to be extremely volatile. In reality, however, the growth rate is extremely smooth, as will be evident if you plot using a semi-log graph.
This, however, is the last time I will try to explain this concept to you.
Looking for a smarter bear,
-BGR.
|
