Do traders really think they can beat the market?
TRADINGFEATURED
"Numerous studies have shown that the majority of active traders do not outperform the market over the long term. This is due to factors such as transaction costs, market efficiency, and the challenge of consistently making accurate predictions. While some traders may experience short-term success, beating the market consistently is extremely difficult"
Many traders believe they can beat the market through various strategies such as technical analysis, fundamental analysis, or algorithmic trading.
Truth is nobody knows what will happen next.
Nobody!
There is no exception.
If you knew what the price would do, you would be the richest person in the world.
Why not load the house on every trade?
I would if I knew something was going to happen.
You don’t need to know.
You need an edge and you need to manage risk.
That’s it.
Stop looking for the holy grail, it doesn’t exist.
This is a probability game and not a certainty game.
Note: Numerous studies have shown that the majority of active traders do not outperform the market over the long term. This is due to transaction costs, market efficiency, and the challenge of consistently making accurate predictions. While some traders may experience short-term success, beating the market consistently is extremely difficult.
Credit: Quora