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RE: How to lose in trading even with 92% correct prediction for stock price directions

in LeoFinance4 years ago

Thats unfortunate that the stock you chose to trade was the only one that went against your prediction. Hopefully it turns around. The market right now is baffling to me. I don't understand why the general trend is going up when half the world is either shut down or running at a reduced capacity. Unemployment is high across the globe. Why is there so much market confidence? Irrational markets I guess? I understand the trading aspect though. The volatility makes it a traders dream

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While I don’t fully understand how it works, I have read and heard several times that Fed has been pumping money(hundreds of billions) into the market through repo market and this has kept markets going so far.

Short for repurchase agreements, the repo market is a complicated, yet important, area of the U.S. financial system where firms trade trillions of dollars’ worth of debt for cash each day. The activities on this market keep the wheels turning on Wall Street and the broader economy.

Interesting. I'll have to read up on that some more. Thanks!