
The Price Debate I once asked in a seminar, "What autorebateforex forex broker rebate program?" Someone replied, "Price is a subjective value." Someone else replied, "Price is the consideration that someone is willing to pay to another party for a good at a particular moment in time. If traders cannot give a clear defin cashback forexion of price, they will not underst forexrebatebest what they are analyzing. understand what price is! At the seminar I gave, while the participants were looking for the answer to this seemingly obvious question, some of them became interested and started arguing about it, as follows: In the most extreme example, in 1929, during the Great Depression, Singers stock was listed at $100 for sale, but suddenly all the buying disappeared and there was not a single purchase. "I want to sell, what is the bid price?" One of the floor clerks said "$1", and the clerk got the stock. He bought a stock that was previously bid at $100 for $1, and the price was the price that the biggest fool was prepared to pay. So thats the difference between the subjective price and what the next person is willing to pay for it. Further, the stock you paid for is absolutely worthless; its just a piece of paper, and its only value is the intrinsic dividend value relative to the Treasury bond at the time. What will happen if you buy and sell soybeans? What happens to a stock that has no income if you can eat the soybeans? But it still has assets, right? Ill give you one share of IBM stock; if no one wants to pay for it, you can light a cigarette and burn it as scrap paper. The companys cash flow, net worth and assets have not changed, so why is there such a big change in the stock price? The stock price has little to do with the company it represents, IBMs stock price is hardly correlated with IBM I think, compared to IBM, IBMs stock price has a very large elastic range, it can go up very high or down very low, the stock price just oscillates along the companys growth curve, the relationship between the company and the stock price is weak the stock price is the intersection of the supply and demand curve every serious trader must know The meaning of price before you start trading stocks, forex, futures or options, you must first figure out what you are analyzing