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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: David Wright who wrote (10597)5/1/1999 2:58:00 PM
From: Jon Tara  Read Replies (1) of 14162
 
"I believe very strongly in it as a way of predicting human behavior, but not as a valid statistical tool to predict how a stock's price is going to behave."

Can we not use statistical tools to study and predict human behaviour, though?

I'd argue that TA is a valid statistical tool to predict how a stock price is going to behave. It works because it is measuring human behaviour, which is to a degree predictable.

Does it matter that some users of TA don't see beyond the stock price, and realize this?

I think it does help to realize this, but I don't think it's necessary for success.

"The market is a zero sum game."

The market is NOT a zero-sum game! If it were, the Dow would be at 100!

"I would certainly challenge anybody that tried to tell me that fundamentals have anything to do with changes in Amazon.com's stock prices."

Now THAT I will agree with! :)
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