This computes the Pythagorean Distance via various metrics. However, the tricky part is appropriately weighing and scaling the factors, as all are not equally important. Still, it’s a starting point to develop your own model.
excellent Mr. Azad!!! I really enjoyed reading this and all the comments after. Having felt your lead punches today all I can say is don’t get anymore insight into sparring or I will have to retire!!!
Wow Khalid. What a great teacher You are. Thanks much, I cleared with your help some basic trading terms that were long overdue in mind to get cleared. The best explanation I’ve found on the net! THANKS. Raph
[…] Wrongo! Talk like that will get you burned on the stock market: investment returns are multiplied, not added! We can’t be all willy-nilly and use the arithmetic mean — we need to find the actual rate of return: […]
Incredibly useful. Most sites ramble but now i understand it, and that is a miracle.
Pocket the pride from this knowledge transaction. Well done and thanks. (The pocketing is done through the knowledge market called the internet)
great article. I was looking for this explanation for a long time. The question I was looking for was why stock prices rise and fall - the mechanics(who puts up/down the price) and not the reasons(micro and macro economics).
To go one further - the market is very dynamic - are there automatic “rules” that make the prices go up and down on stocks as well? Or is it purely individual buyers setting limits manually, stock by stock?
For example - a stock is sold at $40, buyers start buying it, if the seller is smart, he would try and sell it for more - is this action automatic or manual?