Do you sell refrigerators at the North Pole or know how a trend is created? 🌍🧊💡
In these eventful times, we face numerous challenges. How do you deal with exchange rates and price developments in raw materials and energy? Do you recognize a trend and how does it arise? What causes changes in stock market prices? 📈💹🤔
Stock market prices are not determined by the highest selling price or the lowest buying price, but by the best possible turnover. For each executed order, we need both a seller and a buyer convinced of the best deal at the agreed-upon stock market price. External events such as terrorist attacks, disasters, analyst recommendations, quarterly reports, etc. only have a limited direct influence on price formation. There is no secret order book with predetermined adjustments for each event at the stock exchanges! ❌📚🔍
A crucial factor for price formation is the time unit we consider the price. Whether we consider the price in seconds, minutes, hours, days, weeks, months, or years, each time unit has its trend based on which market participants decide. Do you need hedging for the next few years, the current budget, or a project in the coming months? ⏰📊💰
If there is an upward trend in the higher time unit, you should not trade against this trend in your relevant time unit, otherwise, you will be selling refrigerators at the North Pole. ❄️🚫
Therefore, it is important to conclude the formation of a price, the development of the trend, the time unit, and the ability to empathize with other market participants to evaluate the price development. 💭📈📉
How do you deal with exchange rates and price developments in raw materials and energy? Feel free to share your own experiences with us. We are here to help find solutions! 💼💡🤝
