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r/stocks
Stocks that evidently trade on psychology, not fundamentals
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The author observes that some stocks trade in specific psychological price bands rather than reflecting pure fundamentals, suggesting algorithmic or behavioral influences.
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What I notice with some stocks is that they always trade in certain bands between very specific whole dollar amounts, for example always just below $300, and rarely over, for very long periods of time.
That makes me think the trades are not based on fundamentals, but rather just some specific (though arbitrary) numbers that people typed into algorithms.
If the trades were purely based on fundamentals, the share prices would be much more random.
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