09-22-2014, 12:54 AM
(This post was last modified: 09-22-2014, 12:56 AM by earthtodan.)
(09-22-2014, 12:16 AM)TopRamenTrader Wrote: @EarthToDan - are you saying that you trade stocks out for others if you can foresee the corrections and flux in price?
No, what I'm saying is that publicly available information about the future gets built into the price now. If the future direction of the market could be known, the market would go there immediately, at which point, by definition, the future would hold only unknowns.
For example, you might have heard of "sell in May and go away." That wouldn't have worked this year, and in fact May was the start of another leg up in the S&P 500. This is because once everyone knows (or in this case expects) something, there is no informational advantage anymore.
Bottom line, the direction of the market is unknown.