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Market Psychology Definition
Market psychology refers to the prevailing sentiment of investors at any given time and can impact market direction regardless of the fundamentals.
Anomaly is when the actual result under a given set of assumptions is different from the expected result.
Discounting Mechanism Definition
Discounting mechanism is the premise that the stock market takes into account all available information including present and potential future events.
Behavioral Finance Definition
Behavioral finance is an area of study that proposes psychology-based theories to explain market outcomes and anomalies.
Trending Market Definition
A trending market is when a price series continually closes either higher or lower over a number of periods.
Random Walk Theory Definition and Example
Random walk theory suggests that changes in stock prices have the same distribution and are independent of each other.
Dow Theory Definition
The Dow theory states that the market is trending upward if one of its averages advances and is accompanied by a similar advance in the other average.
How Statistical Arbitrage Can Lead to Big Profits
Statistical arbitrage is one of the most influential trading strategies ever devised. Learn how it is leveraged by investors and traders seeking profits.
A behaviorist accepts the often irrational nature of human decision-making as an explanation for inefficiencies in financial markets.
Socionomics is a financial theory that some kind of collective social mood drives observable political, economic, and financial trends.