How do we explain the daily gyrations of market prices?  Are they algorithmic? Are they based on reoccurring rice patterns? How about moon phases?

I dare say they are based on natural laws that have been in place since the beginning of time. These laws are deep seated in human nature and vary only be degree.  We are are affected, afflicted,  and infected by them.

We choose to acknowledge or ignore these laws.  If we choose the former we stand a chance to make it in the trading business; if we choose the later we will most assuredly fail.

In 1939 Burton Pugh wrote the following:



Market moves are based on “elementary human emotions”.

It’s the same today as it ever was.


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