In my opinion, the difficult trading is when the trend is rising sharply and you try to say it is the top. Yes, we know that the market will reach its peak somewhere, but that doesn't mean that it's the peak now, or that you and I can correctly predict the time of exit.
Why is it so difficult to succeed in real-life transactions? It's simple: you can't know when the party will end before it ends.
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So why not wait until we figure out that the bull market is over or is likely to end before jumping to the bearish side? Why do we like to walk by the speeding freight train so much? I really don't understand. Isn’t it wiser to sell in a market that is on a downward trend than to sell in a market that is on an upward trend? I think yes, and more importantly, my experience proves that this is indeed the wisest choice. In other words, this famous investment quote is better: Trends are your friends.
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