By Brian Shannon and written with Kyan Kosling (@KayKlingson).
June 27, 2025
In the markets, we mustn’t confuse price for value.
Since the markets are an auction process:
- 1. Prices represent the levels or ranges where business took place
- 2. The current price represents the latest transaction completed, and the present value assigned by all market participants collectively
If everyone agreed that a specific price represented the ‘true’ value, stocks would trade at a fixed price—how boring!
Instead, price is the fastest-moving market variable, and successful traders capitalize on just one thing: Price fluctuations.
Only price pays.
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