Weak Hands
Categories: Econ
If your hands are tied in financial markets, you probably have “weak hands.” Weak hands refers to times when investors don’t stick with their original plan, either because they choose not to or because they can’t.
For instance, if you planned on buying some ETFs for the long-haul, but then sell sell sell when the market took a dive because you became a scaredy-pants...another investor might think you have weak hands.
Speculative traders oftentimes are considered to have weak hands since they buy and sell in the short-term, reacting to small changes with the hopes of gaining on reversing their position in the market (i.e. buying low, selling high). Weak hands means you buy when the market is at the top and sell when everyone’s confidence took a blow and the market is down.
To avoid weak hands syndrome, take a break from looking at all those charts. Don’t fuel your scaredy-pants fire.
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Finance: What is the Arms Short Term Tra...13 Views
finance a la shmoop what is the Arms Short Term Trading Index not to be
confused with the short arms term trading index a run by this guy all [Man with dinosaur for a head sitting at a desk]
right Richard Arms invented it in the 70s and then a journalist cleverly
renamed it Trin.... short for trading index very clever
yeah well Trin as in Rin Tin is just an index for the advanced decline ratio in
the stock market and if you haven't seen our video on it oh well you should we've
had George Clooney of fortune so directed the computation of the Trin [George Clooney directing a show]
looks like this Trin equals advanced issues divided by declining issues all
over advanced volume divided by declining volume....
So note that this equation maps volume as an element of the computation so it's
meaningfully more useful than just the vanilla advanced decline ratio and hey [Man discussing equation]
just keeping it real their advanced decline ratio we love you but you're [Advanced decline ratio laying on sofa eating doughnuts]
just not as good all right well so if we compute things we get a value of 1 and
well that's good or rather a bullish sign that the market "wants to go
up" above one is bearish and at premiums of 30 40 50 percent ie [Bear walking by a river]
calculations of 0.5 very bullish to 1.5 very bearish well those are signs that
have been validated by actual market performance over time well why would we
care about this calculation in the first place, well if we get the answer right as [Man staring at a crystal ball]
to where the markets going well you know we can make a fortune
yeah ask Warren Buffett... [Warren eating dinner]