What is a strange lotter?

Odd Lonters are investors who buy a lot of securities, usually stocks that are small or unusual. Shares are usually traded with "round batches" of 100 shares and purchases of less than 100 shares are known as odd land.

ODD Lonters are usually small investors who decide on their own investment decisions. In general, they invest smaller amounts because they cannot afford to invest in larger quantities. Sometimes the odd lot can simply decide not to be invested in a certain stock or buy small amounts of shares, however capable.

Odd Lotters are central for the idea in a technical analysis called Lich Theory. This theory, which is popular in 60 and 70, works on the assumption that small investors are unofficated, poorly informed, aversion and illogical compared to the main investors. The theory therefore states that every move that makes an odd lot is bound by an incorrect decision. Larger investors when we see that it is specialLotter decided to sell specific shares, then buy a large amount of this stock, provided the odd lot must be incorrect.

The theory of odd batches has been shown to be unreliable and generally fell out of kindness. Studies have shown that despite the lack of knowledge in securities trading, small investors in their investments are considerably worse than investors in general. Juat, because it is almost impossible to find an investor who is constantly making good decisions, it is very unlikely to find investors, even a poorly recommended special lotter that is constantly making bad decisions.

Sometimes the theory of odd batches can act as a self -realizing prophecy. When we see that the odd lotions have sold shares, the main investors can decide to buy this event in large quantities. If many investors make the same decision, it will increase the prices of shares. This may seem that investingOti The odd Lotter was the key to success.

For some small investors, the theory of odd batches can act as a deterrent. If used, everything but ensures that the decision made by the odd lotion is never worthwhile, because significant investors always work in opposition. This feeling of paranoia associated with investing can lead to other poor investment decisions of small investors.