Wisdom

Predicting The Markets
I have no idea what stock, bond, currency and commodity markets will do over the next six months. How many of the great fundamental analysts had calls that made their clients money over 2008? Not many as trillions of dollars were lost through buy and hold prediction nonsense. Sure, some very smart analysts will get the next six months of predictions right, but then again when you flip a coin, you have a 50% chance of being right too. Does that mean there is no hope for profit? No, if you can put aside the need to try to predict the future and if you can instead trade as a technical trader. Like trend followers who made fortunes in 2008, you will have a chance to make money going forward. Bottom line, if we can't know the future and if we can't know what direction any market will trend, it is far better to have a plan to systematically profit by reacting to market moves versus a reliance on the false hope of predictions.