Putting Stock in Sound
The stock market moves in waves and cycles. It is a never ending buy and bust motion. Everyone is looking for the best way to benefit from the cyclical motion of the stock market, and some are a little more out there with their approach. Check out this site for an interesting idea about stock markets and sound waves.
Not sure about sound being the basis for the market? Let’s check out some other ideas of what underlies the trends in stocks. This author states all the traditional external factors for market fluctuation, such as inflation, interest rates, earnings, oil prices, etc.
What are some traditional ideas about when to invest in stocks? Here are 3 theories:
1) Set a buy price that is comfortable for you, and only buy a stock when it hits your buy price.
2) Buy stocks only on sale
3) Buy stocks that you know about, such as stock in your bank, or perhaps some shares in a product that is your favourite. If you like it, others will too.
What do you think? Are stocks only influenced by traditional external factors, or do they oscillate according to an underlying rhythm much like a soundwave? Let me know in the comments.