The Random Walk Theory

Term of the DayThe Random Walk Theory is most famously known from Burton Malkiel’s stock book, “A Random Walk Down Wall Street.” A follower of the Random Walk Theory is a believer that it is impossible to outperform for the overall market with stock picking.

These theorists believe that stock prices are random and there is no actual correlation between today and tomorrow, each result is independent.

You can read more about the Random Walk Theory in the stock terms area of the site (View a full list of all terms).

Join 17,000 Investors

Receive Daily Market Recaps directly in your email inbox!

Log, Store, and Analyze Your Trades

Whether you're a new or seasoned investor, StockTradingToGo Investor Tools help you trade better.
  • Import your trade history into the cloud
  • Run a full performance analysis on all your trades
  • Keep a private trade journal to record your observations
  • Improve your success rate and ultimately make more money!
Get Started Now