What does it mean for stock market prices to be like a random walk? What is a random walk? Financial economists have come up with an interesting scenario to introduce the random walk to laymen. Imagine if you will, they say, a drunk who has been left at a lamp post. The drunk wants to get home, but every step he takes is in a random direction. What emerges is a very erratic trail, where the position of the drunk over time starts drifting away from lamp post but occasionally coming back to where he started.
Evaluating Interest Rates Of Various Types Of Financial Accounts
June 5, 2010 By
All year round the Federal Reserve makes adjustments to its lending rates to commercial banks, which in turn has an impact on the rates a commercial bank offers its customers. When the economy does poorly, for example during the bubble bursting of the dot com era and the 2007 real estate debacle, the Federal Reserve lowered the rates severely to stave off a recessionary economy. This was a positive state for companies and small businesses that need to borrow money to survive, but was a negative for people who were net savers.
Bullish Necklines, the Bearish Meeting Lines and the bearish Piercing Line Candlestick Patterns
March 6, 2010 By
Trend trading is one of the most profitable trading strategies. You must have heard the oft repeated quote that Trend is your friend. But trend can only be your friend if you know how it is going to behave in the future. If you don’t know that the trend is going to reverse soon, you are going to end up with a heavy loss. Candlestick charting is one of the ways to predict the future of a trend whether it is going to reverse itself in the near future or continue for sometime. Bullish Necklines is a candlestick pattern that can help you know whether the trend is continuing or not. It is a trend confirmation pattern. There are types of Necklines Patterns; one is the In Neck and the other is the Out Neck Pattern.
Small Cap Stock Investment
July 21, 2009 By
Small cap stock is another way of referring to market capitalization of a company, which is calculated by multiplying the number of shares by the current per share price. Unlike large cap stocks, which are shares of large companies and can have a value of as much as $10 billion or more, small cap stocks are shares of smaller companies.
