Stock Market Logic Series #3
Updated
When you buy (get-in) fresh cucumbers, you have time until they will expire.
But when you need to (get-out). You need to liquidate FAST or cucumbers will rot and you cant sell them to anyone.
The same thing goes for the fashion industry.
When a clothes trader purchases clothes for sale he needs time to buy and ship the clothes to the store, it does not happen all at once. When the season ends, and if he needs to get rid of all this "unfashionable" end-of-season clothes. So he wants to liquidate and get out FAST! So you see massive discounts to get everything from him to the consumer.
The same goes for stock trading...
Hope this helps you read better the charts between buying behavior and selling behavior.
Want to know more?
Follow for the next stock market logic.
But when you need to (get-out). You need to liquidate FAST or cucumbers will rot and you cant sell them to anyone.
The same thing goes for the fashion industry.
When a clothes trader purchases clothes for sale he needs time to buy and ship the clothes to the store, it does not happen all at once. When the season ends, and if he needs to get rid of all this "unfashionable" end-of-season clothes. So he wants to liquidate and get out FAST! So you see massive discounts to get everything from him to the consumer.
The same goes for stock trading...
Hope this helps you read better the charts between buying behavior and selling behavior.
Want to know more?
Follow for the next stock market logic.
Note
You want to buy what people want to buy...You want to sell what people want to sell...
This is how you identify which is which :)
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