Question Details

	Username: ForexGuy Rating: Asked to: Goro Yang Date Created: 03 May 2019
Category	28
Tag	Financial
Question	What is the Random Walk Theory?

Advice from Guru

Hi ForexGuy,

The random walk theory suggests that changes in stock prices have the same distribution and are independent of each other, therefore, the past movement or trend of a stock price or market cannot be used to predict its future movement. In short, this is the idea that stocks take a random and unpredictable path.

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