What are stochastics as they have to do with stocks?

Answer by  idiotjones (705)

Stochastics are mathematical models that assume randomness is a process. Stocks assume that much of what happens is due to randomness of world events and human psychology. The stock's future price is dependent upon its current price, which was dependent upon a series of random events.

Answer by  eyeguy (3760)

Stochastics is a process that means if you take a starting point then theorize the many different ways a situation may turn out once you have introduced multiple factors. In the stock market you can think of it as buying a stock then on any given day selling the stock or buying more or doing nothing .

Answer by  HUNM25 (713)

Stochastics is the art of sending receiver and seller signals to stock traders. They are essential in the trading of stocks.

Answer by  Ann89 (613)

Stochastics are an extremely vital tool for share traders. Basically they are used by traders to generate a buy and sell signals. This can be of immense help when deciding when to buy or sell.