Sometimes stock movements are beyond candlesticks or technicals
and more of the stock's "characteristics" given by
the players that control the stock.
The Stock Market is one Big Ecosystem.
But don't you worry, there are a lot of ways to survive and thrive in it.
Here are some eco-relationships you might already have or might consider having...
COMMENSALISM
Commensalism is a relationship in which one organism benefits
from another organism that is not affected. This is a positive,
neutral relationship.
Just like the photo above, most of the market players choose to ride with the "whales."
This relationship immensely benefit the small fishes since whales don't usually get "attacked."
Whale Buys Up a Stock = Small Fish Happy
Small Fish Buys Up a Stock = Whale doesn't feel a thing
Whale Buys Up a Stock = Small Fish Happy
Small Fish Buys Up a Stock = Whale doesn't feel a thing
Blue Chip Ecosystems are perfect examples of this.
More protection from market volatility.
MUTUALISM
"You Scratch My Back, And I scratch Yours."
Mutualism is the way two organisms of different species
Mutualism is the way two organisms of different species
exist in a relationship in which each individual benefits.
Well ain't that Cute...
Happens mostly in 2nd Liner Ecosystems
with good fundamentals like TA, CPG, RFM and PIP.
Big players. Market Movers. Jockeys.
One Of these Bad Asses Buys Up = Everybody Happy
One Of these Bad Asses Buys Up = Everybody Happy
They usually form alliances and make Joint Ventures (JV)
to push their common stocks for their mutual benefit.
Some players however, turn out to be "freeloaders"
Which in turn leads to...
Some players however, turn out to be "freeloaders"
Which in turn leads to...
PARASITISM
Parasitism is a non-mutual relationship between organisms of different species where one organism, the parasite, benefits at the expense of the other, the host.
This could be fatal in cases where the host becomes filled with
hoards of parasites - especially when the BIG ones get on board!
Parasite Hoard Attaches itself to Host
Host Works Its Ass Off
Parasite Hoard Sells
Host Feels Sick
Host Feels Sick
Parasites Happy
And Now to my favorite part...
PREDATION
In ecology, predation describes a biological interaction where a predator feeds on its prey. Predators may or may not kill their prey prior to feeding on them, but the act of predation often results in the death of its prey and the eventual absorption of the prey's tissue through consumption.
Oh what Lovely Shots Don't you think?
Very Common with 3rd Liner Ecosystems.
Predator Buys Shares, Prey Buys Higher
Predator Sells, Prey Gets Trapped.
Predator Happy.
Predator Happy.
Need I say more?
It's EAT or BE EATEN policy.
Happy ECO-SISTING Everyone.
Excellent article as expected!
ReplyDeleteThumbs up master zee :))
Keep 'em coming, bro Zeefreaks!
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