How it works
The financial markets are comprised of people. The movement of prices in the stock market is nothing more or less than the sum total of the decisions of all the people in the process of investing or selling at any given moment.
The question then becomes 'can the actions of people be predicted?'
This certainly sounds like an impossible job - people can be very unpredictable. However, when you stop looking at individual people, and pay attention to the behavior of the crowd instead, it becomes a very different task - the same sort of job that advertisers and politicians specialize in. There are unique difficulties, to be sure, but human behavior does have predictable tendencies.
Not everything that happens on a stock market chart is predictable. Some price movement is random. Other times, price movements can be triggered by news events, new product launches, management changes, or scandals.
Computerized timing systems work by finding common patterns in the data that statistically correlate with particular price movements. You will find that systems like ours work best with indexes or funds (ETFs or mutual funds) because in a large grouping of stocks, individual fluctuations (caused by what may be happening at that particular company) are minimized, and conversely, statistical trends common to all stocks add together and are emphasized. It's these common trends that the computer trades on.
The links below take you to other pages on our site that help to explain what the TradeWHEN system is, and how it works.
- See what makes the TradeWHEN system special
- How to make a TradeWHEN portfoilio
- Investing lessons from the gaming table
- How to use TradeWHEN
- Join TradeWHEN today, FREE!