Why Traders Are Paying Close Attention To This E-Com Stock
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For this issue, I want to discuss something that I have noticed throughout my many years of trading, and something that our stock today, Etsy (ETSY), has been reacting to well lately. The topic of today’s discussion is whole “psych” numbers.
Oftentimes, when there is a stock that has a relatively high number of traders all trading the same stock, they begin to look at whole numbers like 100, 150, 165, etc., for example, and trade of those levels. This is a psychological phenomenon where the fact that the level is based on a whole number, many traders all gravitate toward trading off it, giving the level validity. ETSY has begun to move in this way, lurching to levels in $10 increments or so.
To see exactly what I mean, a visual representation will explain it best. Check out the video below to learn more!
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