Stock prices fluctuate constantly. There are several reliable ways to mitigate stock price volatility: trading short-term gap price differences, buying and selling with momentum, or holding high-quality stocks for the long term until volatility averages out. When stock price movement is mathematically differentiated by time, the instantaneous price emerges—but humans cannot act in microseconds. In contrast, computers, with enhanced performance, can now trade at these speeds. Furthermore, by using artificial intelligence to analyze stock data, computers can reduce mistakes and trade algorithmically, unaffected by emotion. Still, even computers are limited if humans incorrectly input trading rules. Humans are not suboptimal investors due to a shortage of information or knowledge, but because they often fail to follow the necessary rules in each situation. - Joseph’s “just my thoughts”
Almost 90 years ago, Albert Einstein and Charlie Chaplin met at the premiere of the film “City Lights” in Los Angeles. Einstein said to Chaplin, “What I admire most about your art is its universality. You don’t say a word, yet the world understands you!” Chaplin replied, “True. But your glory is even greater! The whole world admires you, even though they don’t understand a word of what you say.” What is respect, and what is understanding? - Joseph’s “just my thoughts”