By Investment U Research Team Noise traders aren’t the most scientific of traders. Instead, they tend to go on gut feeling and value non-traditional metrics. These traders seek to capitalize on market volatility. They open positions just before they believe a breakout will occur. In fact, they can come from technical or fundamental backgrounds. What distinguishes them is their deviation from traditional metrics in either case.
It’s often thought that retail traders constitute most of the “noise” in an active trading day. That said, institutional investors often find themselves making trades on impulse or gut feeling. As a result, significant volume (noise) on a given …read more
