“Do not resist the tape.” This frequently quoted stock market aphorism advises investors against impeding market tendencies. Market moves are assumed to continue in the same direction. This notion has its origins in behavioral finance. With so many stocks to choose from, why would investors prefer to invest in a decreasing stock over a rising one? This is a classic illustration of greed and fear at work. Additionally, in today’s society, we may say, “do not resist the Fed.”
Talk soon,
Al Losada
Founder | SimpleOptionStrategies.com
You can also check out my YouTube Channel at SOS YouTube.
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