$ON fell below the 0.18 level.
I used to wonder why everyone paid attention to round-number levels. It took me a while to understand: traders tend to place limit orders and stop-losses around round numbers, so orders pile up and buying and selling become more concentrated in those areas. Over time, they become psychological levels.
Don’t let a single number throw off your original strategy, and don’t gamble borrowed money on a hunch.
I used to wonder why everyone paid attention to round-number levels. It took me a while to understand: traders tend to place limit orders and stop-losses around round numbers, so orders pile up and buying and selling become more concentrated in those areas. Over time, they become psychological levels.
Don’t let a single number throw off your original strategy, and don’t gamble borrowed money on a hunch.
