3 ms·
Markets are somewhat like the opposite of the weather. It's possible, if done correctly, to predict long term trends but not short term. There is too much volat
by ALittleLight 5y ago
Markets are somewhat like the opposite of the weather. It's possible, if done correctly, to predict long term trends but not short term. There is too much volatility to know what will happen today even if you can guess about a few years from now. Company X may indeed be a good company and undervalued for reasons Y and Z but the price could still go down tomorrow even if it will probably be up a year from now.
One difference between investing and gambling is that you can expect returns from following an investment strategy. Most day traders lose money. They can't predict short term future prices. What gains they get are through luck. Compared to investors who can have predictions about trends or specific stocks and who typically make money.