Biases in the Market

Hey folks!

This question is for you more experienced traders and investors.
What biases persist in the FX trading and Stock/Bond investing?

This question is vague on purpose.
I was wondering in a specific sense, but would rather aim wide and then narrow in afterward.

For example, the upward bias of stocks over the last 200 year or so.
Giving the hit rate edge of stocks to buyers rather than sellers over the long term.


These biases don't have to be huge.
I'm just wondering what sorts of biases persist.

Thanks in advance!

There is an upward bias in stock indices due to the induction of companies with rising share prices/market capitalisation and the relegation of companies going the opposite direction. But the individual stocks themselves have no inherent directional bias in share price either up or down.

That said, I wonder if there might be a resistance to share price falls in stocks which carry a consistent dividend entitlement.

tomorton said:

There is an upward bias in stock indices due to the induction of companies with rising share prices/market capitalisation and the relegation of companies going the opposite direction. But the individual stocks themselves have no inherent directional bias in share price either up or down.

That said, I wonder if there might be a resistance to share price falls in stocks which carry a consistent dividend entitlement.

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Indeed.
I should have said stock Indicies.

In regards to your wondering about decline resistance in stocks with consistent dividends... Have you any examples of this?

Just a theory, stocks not what I follow and trade these days.

Forex is considered to be one of the most reliable virtual earning platforms in this present day of technological development. But there are many biases in the minds of many forex traders. For this reason, a trader must try to give emphasis on the reality of forex trading. And a trader will always require adequate trading knowledge and skills to ensure a safe trading journey and make trading decisions out of biases.

Merk Porter said:

Forex is considered to be one of the most reliable virtual earning platforms in this present day of technological development. But there are many biases in the minds of many forex traders. For this reason, a trader must try to give emphasis on the reality of forex trading. And a trader will always require adequate trading knowledge and skills to ensure a safe trading journey and make trading decisions out of biases.

Click to expand...

Not sure I would class Forex trading as reliable. Considering most who try to earn money from it not only lose, but lose miserably. Perhaps you meant it in terms of those who have already grasped what it is to be a profitable trader.