Some researches on trading/investing psychology show that the nature of salaried jobs may be responsible for holding back some people from being successful traders or investors. Some jobs require detailed and careful planning and must be executed accurately without any errors e.g. job of a surgeon and pilot. Surgeons and pilots are known to be poor traders.
But, when it comes to the stock market, most of the time, you don't have to be more accurate, more detailed, more safe to make money. Stock market doesn't operate in this nature.
The daily stock price volatility is seldom driven by changes in detailed analysis of a company's intrinsic value.
The stock market is still a market place for buyers and sellers to transact. If the view of the buyers and sellers are strongly oppose to each other, the stock prices are going to be driven crazy in either direction.
The daily stock prices are mainly driven by these groups of people:
Some will speculate.
Some will anticipate.
Some act before news - they are better informed.
Some act after news - they are late for the party.
Some act on rumors.
Some follow blindly.
Some act on sentiments and emotions.
Some are forced to act - by their trading methodology or their brokers
Honestly, how many will act on changes in intrinsic value?
If you are holding a hammer, everything looks like nails. Best to leave your hammer at your workplace and don't ever bring your hammer to your personal investment as you don't need to answer to your bosses.
USD/CNH: The major resistance at 7.2800 is likely out of reach
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