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Mean reversion trading is like playing with a bouncy ball. Prices in the stock market go up and down, just like the ball. Mean reversion traders believe that when prices go really high or low, they will eventually come back closer to their average or "mean." They try to make money by buying something when it's low and selling it when it's high. Although it doesn't always work perfectly, over time, things tend to go back to their average, just like the ball tends to come back down.
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Disclaimer: The information in this trade journal is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.
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