What Is the Random Walk Theory?
Random walk theory suggests that changes in stock prices have the same distribution and are independent of each other. Therefore, it assumes the past movement or trend of a stock price or market cannot be used to predict its future movement. In short, random walk theory proclaims that stocks take a random and unpredictable path that makes all methods of predicting stock prices futile in the long run.
Efficient Markets are Random
The random walk theory raised many eyebrows in 1973 when author Burton Malkiel coined the term in his book "A Random Walk Down Wall Street."
Some people think technical analysis is absurd, nonsense, or...etc.
Some think it could be a science when it is approached scientifically..!
I did research on IPOs and Opening days in the last 3 years, and the result gives me the power to analyze the most probable price pattern of Coinbase before it came to market!
Let's review the facts:
Apr 13: Should I buy Coinbase tomorrow?
I know this could be a totally different story, but it is good to review this post!
If you are an active trader:
I believe no matter what is the opening price for Coinbase tomorrow, it could be possible to buy it at a lower price the day after tomorrow..! if you have doubts, check the biggest companies opening days!
If you are a long-term investor: you have to be more careful, in most cases, the opening day bubble will bust in a couple of months.
Even the biggest tech companies like Facebook had experienced the same story!
please check my previous post about the opening day of BMBL.
Apr 14:
It is time to check the fact, and analyst abilities..!
yesterday I published this an analysis about opening days with 8 examples!
it is time to review it:
Apr 20:
how deep Could Coinbase go?
I repeatedly ask my followers not to participate in this..!
now I believe it could go down to 240-250 in a couple of weeks!
Apr 22:
Time proves how accurate is the analysis!
Those who have early access to my trading ideas have the chance to perform better.
Don't you believe it?
Check my recently private post:
If you are interested to have early access to my trading ideas, check the signature box below the post for more information.
Educational Article:
https://www.investopedia.com/terms/r/randomwalktheory.asp
Random walk theory suggests that changes in stock prices have the same distribution and are independent of each other. Therefore, it assumes the past movement or trend of a stock price or market cannot be used to predict its future movement. In short, random walk theory proclaims that stocks take a random and unpredictable path that makes all methods of predicting stock prices futile in the long run.
Efficient Markets are Random
The random walk theory raised many eyebrows in 1973 when author Burton Malkiel coined the term in his book "A Random Walk Down Wall Street."
Some people think technical analysis is absurd, nonsense, or...etc.
Some think it could be a science when it is approached scientifically..!
I did research on IPOs and Opening days in the last 3 years, and the result gives me the power to analyze the most probable price pattern of Coinbase before it came to market!
Let's review the facts:
Apr 13: Should I buy Coinbase tomorrow?
If you are an active trader:
I believe no matter what is the opening price for Coinbase tomorrow, it could be possible to buy it at a lower price the day after tomorrow..! if you have doubts, check the biggest companies opening days!
If you are a long-term investor: you have to be more careful, in most cases, the opening day bubble will bust in a couple of months.
Even the biggest tech companies like Facebook had experienced the same story!
please check my previous post about the opening day of BMBL.
Apr 14:
It is time to check the fact, and analyst abilities..!
it is time to review it:
Apr 20:
how deep Could Coinbase go?
now I believe it could go down to 240-250 in a couple of weeks!
Apr 22:
Time proves how accurate is the analysis!
Those who have early access to my trading ideas have the chance to perform better.
Don't you believe it?
Check my recently private post:
If you are interested to have early access to my trading ideas, check the signature box below the post for more information.
Educational Article:
https://www.investopedia.com/terms/r/randomwalktheory.asp
