Let’s not pretend.
We don’t know, do we?
In fact two of the fundamental truths of trading tell us that:
- Anything can happen and
- You don’t need to know what is going to happen next to make money.
Seems strange but there it is – the truth. It is good to know what we don’t know.
This puts paid to the many analytical hours spent exasperatingly trying to forecast and predict share prices, and yes even technical analysts are more than guilty of that. Fundamental analysts may construct various models, projections and price targets about what the future offers but this is to little avail in guiding us to what share prices will really do. Thus it seems the contrarian was bred!