FA Center: Wall Street always has a story to tell, and the best investors know to expect plot twists.

Wall Street is a great storyteller, and the stock market’s record reads like a long collection of short stories. Investors need to identify not only what each story is about, but every aspect of the plot mechanics that makes it worth reading.

Investors also must consider both the horizontal and the vertical dimensions of the story. The horizontal aspect refers to the timeline of events, while the vertical one depicts the changing levels of investors’ tension over the course of the narrative. Wall Street is great at creating…