I saw this post the other day, and i found it fascinating, and so i decided to reproduce it here.
When someone says, “Listening to investment guru and timing markets is a good idea”
When someone uses “technical analysis”. “Something is ‘oversold’ or ‘at support’ and has to go back up.”
When someone uses “technical analysis”. “Something is ‘overbought’ and cannot go higher.”
Its a famous company with a very long track record. It cant just go to zero in just one month.
Housing prices wil only go up.
Just because something is expensive valuation wise, we should short it.
Its possible to time the market, and call the top and bottoms of market without the benefit of hindsight.
This was warren buffets results during the peak of the dotcom bubble. Imagine the stress, value investing is not easy.
Dinosaur Technical analysis!
There’s a reason why people who invest in cryptocurrency rely mainly on technical analysis. Its because they have no idea what its worth, and the only thing they have to base its value on is short term price movements.