Replies to post #63426 on Bravada International Ltd (BRAV)

[dmlabuda]

Not entirely. Traders and investors make decisions to buy or sell based upon their perception of a number of factors which they perceive to be influential to other investors that will result in enough buying or selling activity to alter or maintain the price trend in the direction of the position they hold or intend to take regarding any given stock. Some traders and investors known as fundamentalists make their decisions based primarily upon the fundamentals. There are other traders and investors that take a broader stance and who consider the fundamentals but use the technical analysis to determine to right time to open or close a trade. Then there are those I call the realists who are purely technical traders who only consider the chart analysis because they understand that the chart reflects an accurate picture of what all of the traders and investors regardless of their persuasion are actually doing regardless of why they are doing it. The realists know that in a supply and demand market, there is really only valid reason why the price of a stock will or up (or down) and that is when the majority of traders regardless of their persuasion are aggressively buying (or selling) respectively. There is one other kind of trader or investors and I call this group the emotionalists. These folks do not completely understand the true nature of the fundamentals and choose to believe that technical analysis cannot possibly have any validity primarily because they do not understand it and so this group of traders and investors tends to be crowd followers in the sense that they buy or sell based upon their emotions and their perception of what direction they the crowd appears to be favoring at that moment. In general they get their information from the news and the opinions of other traders and investors. This group of traders, in general, loses money to the other three groups who have taken the time to study at least one aspect of trading and investing in depth and therefore have some percentage of the odds in their favor when they make buy and sell decisions.