Sunday, December 27, 2009

Predict a top or bottom

A lot of traders try to predict a top or bottom in the stock market and many fail doing so and  you will end up with a loss.

When you try to buy at the lowest price, then the price declines even further or the price doesn't move at all and your money is locked up for a longer period.

When you try to predict a top then mostly you are wrong and the top is a bit higher, and you being short are making a loss since the top is a bit higher as expected.

The bottom line is, look at what the market is doing and follow that move.

Links of interest