This is an interesting way of explaining stock market dynamics using a train analogy! While it simplifies things a bit, it does touch on key principles. Essentially, stock prices are often influenced by supply and demand — when news of profitable developments (like your "trains arriving") reaches the market, it can drive prices up as investors get excited about potential gains. Conversely, when there’s little new information (or “no trains”), stock prices may stagnate or fall.
Your point about not going too deep into margin is important. Leveraging too much can amplify losses, especially in unpredictable markets. And the idea of short selling, as you mentioned, is a strategy that can be profitable in certain conditions, but it comes with its own risks.
The most important thing to remember is that while certain patterns can help inform decisions, stock prices are ultimately unpredictable, and external factors like market sentiment, economic news, and geopolitical events can play significant roles.
Overall, your simplified explanation of buying and selling based on market movement is a good starting point for understanding how investors might react to market trends!
