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why do prices fall faster


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#1 Tor

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Posted 07 June 2007 - 02:20 PM

i am just curious to know any explanation. Theoretically should fall at same speed as rises. Thanks.
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#2 Mtrader

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Posted 07 June 2007 - 02:31 PM

Fear is strong than GREED?
You are on your own. This is for demonstration only.
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#3 Islander

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Posted 07 June 2007 - 02:33 PM

i am just curious to know any explanation.

Theoretically should fall at same speed as rises.

Thanks.



I think it might be gravity?

#4 fib_1618

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Posted 07 June 2007 - 02:42 PM

Theoretically should fall at same speed as rises.

Humans are slow to embrace constructive change, but quick to panic.

Not having control, nor knowing what the future holds, are both prominent in both of these emotional (price) reactions and come in varying degrees. This is what causes compression in many of the analytical tools and price patterns we use as technicians that forecast such events in the first place, and the assumed reaction based on past indications of similar set ups.

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#5 Russ

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Posted 07 June 2007 - 02:51 PM

It is just simple animal instincts, any animal including humans are slow to trust, to tame. Fear is a survival instinct, because death in the jungle can come very fast!
"Nulla tenaci invia est via" - Latin for "For the tenacious, no road is impossible".
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#6 mss

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Posted 07 June 2007 - 02:54 PM

i am just curious to know any explanation.
Theoretically should fall at same speed as rises.
Thanks.


:)
Not willing to buy when people wont to sell = decline, does not need a lot of vol.

Not willing to sell when people wont to buy = rise, does need some vol.

Simply put, prices can fall without help, but need help to rise.

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#7 calmcookie

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Posted 07 June 2007 - 03:06 PM

Red blood is heavy .... sinks faster. :P

#8 raleigh

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Posted 07 June 2007 - 03:11 PM

stock mkt heights = dizziness = nose bleeds = exsanguination = fatal.

#9 spielchekr

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Posted 07 June 2007 - 04:11 PM

There's more than one way to boil a frog. :giljotiini:

#10 linrom1

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Posted 07 June 2007 - 04:15 PM

i am just curious to know any explanation.

Theoretically should fall at same speed as rises.

Thanks.


I think that it has less to do with market psychology than with simple fact that after years of accumulations, institutions have just more shares to offload in a changing market. :)