Monday, November 8, 2010

MARKETS DIFFER

In the same way that every trader is different, well, every market or
stock has its own uniqueness about itself. Markets have different liquidity, different spreads, different high to low intraday moves, even different
hours. The costs to trade them are different, the way they trend or how
they react intraday are different. Some stocks are market leaders, some
are followers. Some will move one way when interest rates drop and others
a different way. Some are in all the hedge funds and are prone to huge
swings if the funds get involved. Some markets react differently to news
than do others. Some are largely dependent on news and weather, while
others are more technical. Some are very active at night and others don’t
even trade after hours. I could keep going on and on but you get the picture.

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