35

From my understanding, my limit order is run/executed in any case since I made a limit order at x, and the share price must be a continuous function. The cases x<y and y<x at the instance of market opening can not occur since that would mean that the value can be arbitrary at market opening. No, share prices do not have to be continuous, and the ...


15

A model is a mathematical formula that tries to explain something or predict something based on a set of inputs or conditions. The price of an item in a free market doesn't have to obey any model. If a bunch of people think that something will become more valuable or less valuable in the future that will drive the price change because people are either ...


9

For most people, never. You may think the market is on a long bull run now but no one knows whether it is going to hit the peak tomorrow or next week or next month or 3 years from now. If you wait on the sidelines, you could miss out on a lot of growth between now and then. And, of course, you have the same problem in a bear market where you can miss out ...


8

the share price must be a continuous function Even if this were true, at least 17.5 hours pass between the close and the next open in US stock markets. The "true" price can change throughout this time. Sometimes the price remains visible, as with after-hours and pre-market trading. Sometimes the price is not quoted but people's views on the stock ...


6

The market is an auction and a security's price is determined by supply and demand. If there is a order imbalance (net excess buy or sell volume), overnight price will change. This may occur during after hours trading and if there is none, at the open of regular hours trading. If you place a limit order at X, you'll be filled at X if the security trades at ...


4

The idea of a stock having a concrete price at any given moment in time is a description of the stock market, not a fundamental reality. When you say things like: From my understanding, my limit order is run/executed in any case since I made a limit order at x, and the share price must be a continuous function. The cases x<y and y<x at the instance of ...


3

The Super Bowl Indicator, attributed to Leonard Koppett, states that a if it is won by an original National Football League team (pre AFL/NFL merger) then the market will be up for the year. If the AFL team wins, the market down will be down. In the first 23 years, it was correct 21 times or 91%. As with your observation about the market dropping on the ...


3

When a global pandemic causes the markets to crash. You might not get in on the bottom but you can do pretty well by having cash ready to invest during rapid downturns like that. In general though, it's a poor idea to try and time the market and time in the market is more useful.


2

What are the reasons the index is so high with 1000% growth now compared to 12 years ago? Is one reason, the people have bought more stocks and invested 1000% now compared to the year 2010? One reason for the growth was that 2010 was at/near the bottom for stock prices. The index went up because stock prices went up. They went up because money flowed into ...


2

It is very easy to time the market, no expertise is really needed. Those that bought at the worst possible time, during the last major crash in 2007, are enjoying healthy profits now. For example, if you look at SSO, a S&P500 ETF and bought a bunch in Oct of 2007, you would have paid 23.87/share. On 1/9/2009 your investment would have been worth less ...


1

If there are no taxes because these are retirement accounts, and there are no fees.; then there is no difference between the options.. Doubling $400 gives you $800 as does doubling two piles of $200 each. The same thing is true iif it drops 50%. $400 becomes $200 no matter how many piles it is divided into. Taxes and fees will change the math.


1

It depends on the conditions attached to your order. If you place an All Or None (AON) limit order and there aren't enough shares to fill your order at your price then there is no trade execution. If it's a limit order without the AON stipulation then you get whatever number of shares are available at your limit price and the rest of your order will only be ...


1

You have a fundamental misunderstanding of how exchanges work. The "share price" is not the price you can buy or sell at. It is just the price at which the last transaction was executed. At any point in time, there is a list of people who want to buy those shares, each with a maximum quantity and a maximum price. And there is another list of people ...


1

Where Did "Bulls" and "Bears" Come From? ...the actual origins of these expressions are unclear. Here are two of the most frequent explanations given: The terms "bear" and "bull" are thought to derive from the way in which each animal attacks its opponents. That is, a bull will thrust its horns up into the air, while ...


1

Tl:dr Finance/Economics is arts(social 'science') pretending to be science. It's the bane of modern society. See Prof. Feynman's lecture "What is science" 1966. From an interview with the BBC: “Because of the success of science, there is a kind of a pseudo-science. Social science is an example of a science which is not a science. They follow the ...


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