The theory of relativity is well applicable to the stock markets for two reasons. First, no one stops you from applying any thing that you can apply on the stock market and second stock picking is done when a stock is relatively valued, relative to index, peer group or fair price. Stock selection, evidently, is not restricted to one or two methodologies; it is an open field where it is a buy signal when prices are over the shoulder, guidance from the candle indicators, and geometry of the chartist, call of the fundamental s or sheer good feeling. All these are plausible ways for a simple reason that there are different ways to track the market and take a position in anticipation of a better yield.
Can it be avoided? Predicting market direction is an onerous task. An alternative to trading on trend and timing could be trading on volatility. Volatility is the dearest friend of an option trader. This is a factor which makes an option relatively valuable or otherwise. How! Insurgence of theorists in the field of stock valuation has been more obscure than demystifying the substance. Well, that's the bravery of academicians to narrate fundamentals of field where there are no fundamentals. If equity markets are illusory what will one comment about their derivatives? The grand illusion! But lets not forget what appears tough may be dough.
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