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Humans are deeply flawed creatures
All humans are manipulators (some just don't realise it) to get a desired or favourable outcome for themselves (go figure)

What drives share prices
Let's have a direct look at the weekly volatility of ANZ, CBA & BHP. Nothing has changed for these companies in the last week but it's abundantly clear that the market participants were spooked.

Who spooked them do you ask?
Frankly, the other participants, that's who. Trading is an auction & with all auctions, people bid to what they "believe" the company is worth & not what the company is "actually" worth, that's left up to the fundamental traders to work out.

Example
Monday, 25th January the opening price of ANZ was $24.68 - closing on Friday 29th January 2021 was $23.71 (the price collapsed because of the emotion of fear)
Monday, 25th January the opening price of CBA was $85.11 - closing on Friday 29th January 2021 was 83.51 (the price shifted down because of the emotion of fear)
Monday, 25th January the opening price of BHP was $46.45 - closing on Friday 29th January 2021 was $43.56 (the price always shifts because of emotions)

Emotions
I recently made a post about "imagining emotions" & if you could handle daily or weekly trading. If you are highly strung & let your emotions get the better of you it's better for you to trade daily as your emotional curve is smoother over a shorter period. But if you can accept my last few posts on trading systematically, just go with the flow, take your punches & keep trading.

Skate.

<blockquote data-quote="Skate" data-source="post: 1109937" data-attributes="member: 57364">Humans are deeply flawed creaturesAll humans are manipulators (some just don&#039;t realise it) to get a desired or favourable outcome for themselves (go figure) What drives share prices Let&#039;s have a direct look at the weekly volatility of ANZ, CBA &amp; BHP. Nothing has changed for these companies in the last week but it&#039;s abundantly clear that the market participants were spooked.Who spooked them do you ask?Frankly, the other participants, that&#039;s who. Trading is an auction &amp; with all auctions, people bid to what they &quot;believe&quot; the company is worth &amp; not what the company is &quot;actually&quot; worth, that&#039;s left up to the fundamental traders to work out.ExampleMonday, 25th January the opening price of ANZ was $24.68 - closing on Friday 29th January 2021 was $23.71 (the price collapsed because of the emotion of fear)Monday, 25th January the opening price of CBA was $85.11 - closing on Friday 29th January 2021 was 83.51 (the price shifted down because of the emotion of fear)Monday, 25th January the opening price of BHP was $46.45 - closing on Friday 29th January 2021 was $43.56 (the price always shifts because of emotions)EmotionsI recently made a post about &quot;imagining emotions&quot; &amp; if you could handle daily or weekly trading. If you are highly strung &amp; let your emotions get the better of you it&#039;s better for you to trade daily as your emotional curve is smoother over a shorter period. But if you can accept my last few posts on trading systematically, just go with the flow, take your punches &amp; keep trading.Skate.</blockquote>

[QUOTE="Skate, post: 1109937, member: 57364"] [B]Humans are deeply flawed creatures[/B] All humans are manipulators (some just don't realise it) to get a desired or favourable outcome for themselves (go figure) [B]What drives share prices [/B] Let's have a direct look at the weekly volatility of ANZ, CBA & BHP. Nothing has changed for these companies in the last week but it's abundantly clear that the market participants were spooked. [B]Who spooked them do you ask?[/B] Frankly, the other participants, that's who. Trading is an auction & with all auctions, people bid to what they "believe" the company is worth & not what the company is "actually" worth, that's left up to the fundamental traders to work out. [B]Example[/B] Monday, 25th January the opening price of ANZ was $24.68 - closing on Friday 29th January 2021 was $23.71 (the price collapsed because of the emotion of fear) Monday, 25th January the opening price of CBA was $85.11 - closing on Friday 29th January 2021 was 83.51 (the price shifted down because of the emotion of fear) Monday, 25th January the opening price of BHP was $46.45 - closing on Friday 29th January 2021 was $43.56 (the price always shifts because of emotions) [B]Emotions[/B] I recently made a post about "imagining emotions" & if you could handle daily or weekly trading. If you are highly strung & let your emotions get the better of you it's better for you to trade daily as your emotional curve is smoother over a shorter period. But if you can accept my last few posts on trading systematically, just go with the flow, take your punches & keep trading. Skate. [/QUOTE]

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