Ripple
Definition of 'Ripple'A term used by "The Dow Theory" author, Robert Rhea, to describe the day-to-day fluctuations in stock market price activity. Rhea wrote that three simultaneous movements of stock prices occur that can be compared to tides, waves and ripples. The Dow Theory, published in 1932, indicated that speculators attempt to ride the tides and the occasional big waves, and that only reckless investors would ever attempt to profit by the day-to-day price changes or ripples. |
|
Investopedia explains 'Ripple'Many of today's technical and fundamental analysts encourage investors to ignore market ripples -the small changes in daily price movement -and instead focus on the longer-term tides and waves. Active traders, and in particular day traders and scalpers, try to exploit these short-term ripples for profit, often opening and closing a position within a matter of hours, minutes or even seconds. Despite Rhea's belief that this type of investing was reckless, it has become an established type of market participation. |
Related Definitions
Articles Of Interest
-
A Primer On The MACD
Learn to trade in the direction of short-term momentum. -
Do Your Investments Have Short-Term Health?
If a company is strong enough to survive tough times, it is more likely to provide long-term value. -
Identifying Market Trends
The success or failure of your long- and short-term investing depends on recognizing the direction of the market. -
Capital Gains Tax 101
Find out how taxes are applied to your investment returns and how you can reduce your tax burden. -
10 Tips For The Successful Long-Term Investor
These guiding principles will help you avoid common folly during the decision-making process. -
Mastering Short-Term Trading
Making money in a pressure-cooker environment is all about minimizing risk on hot picks. -
I have a short period of time (1 year or less) during which I will have money to invest. What are my investment options?
If you only have a short period of time in which to invest your money (i.e. less than one year), there are several investment options you should consider outside of the typical checking and savings ... -
When To Short A Stock
Learn how to make money off failing shares. -
A Top-Down Approach To Investing
Use a global view to determine which stocks belong in your portfolio. -
How Risk Free Is The Risk-Free Rate Of Return?
This rate is rarely questioned - unless the economy falls into disarray.
Free Annual Reports