Convergence : A phenomenon where a specific value or level moves toward a certain standard . A bubble occurs when a community’s value rises excessively due to overestimation , while an undervalued state is the opposite. Both eventually settle at a balanced value recognized by the community , called convergence. Bubbles and undervaluation represent states at any given time. If a seller sets a product at an excessively high price, it won’t sell indefinitely, and the seller will eventually lower the price. Market prices tend to converge. There isn’t a single correct market value, but converged values exist, and this phenomenon gives the market its meaning and existence. There’s no need to be arrogant when doing well, as your high wages will eventually align with the market price. - Joseph’s “just my thoughts”
Stock prices fluctuate constantly. There are several reliable ways to mitigate stock price volatility: trading short-term gap price differences , buying and selling with momentum , or holding high-quality stocks for the long term until volatility averages out. When stock price movement is mathematically differentiated by time , the instantaneous price emerges —but humans cannot act in microseconds. In contrast, computers, with enhanced performance, can now trade at these speeds. Furthermore, by using artificial intelligence to analyze stock data, computers can reduce mistakes and trade algorithmically , unaffected by emotion. Still, even computers are limited if humans incorrectly input trading rules. Humans are not suboptimal investors due to a shortage of information or knowledge, but because they often fail to follow the necessary rules in each situation. - Joseph’s “just my thoughts”