Welcome Stockaholics!

We are a new and fast growing financial forum! Sign up for free and let's talk stocks!

  1. Do you want to help develop this community? We are looking for contributions from investors and traders like you! What stocks do you follow? What is hot right now? Sign up and get in on the ground floor of the newest, fastest growing financial forum!
    Dismiss Notice
  2. You will notice a live chat widget on the right. Click in to join us and lets hear about how you nailed that last UWTI trade!
    Dismiss Notice

Is the market always right?

Discussion in 'Investing' started by TomB16, Sep 17, 2018.

  1. TomB16

    TomB16 Active Member

    Joined:
    Jun 22, 2018
    Messages:
    241
    Likes Received:
    83
    As a value investor, I do not believe the market is always right. My goal is to look for arbitrage among the short list of companies I want to own.

    I've often wondered if it is required to believe the market is always right to trade stocks using technical analysis. Is this the case?

    Opinions appreciated.
     
  2. Three Eyes

    Three Eyes 2018 Stockaholics Contest Winner

    Joined:
    Dec 14, 2017
    Messages:
    561
    Likes Received:
    495
    Nope.

    *Most* TA only depicts behavior and doesn't give a hoot about whether the market has correctly valued the stock. I suspect that the majority of us who use a little (or a lot) of TA have the same goal to identify arbitrage opportunities and, thus, appreciate market inefficiency for setting up good entries and exits.
     
    TomB16 and bigbear0083 like this.
  3. StockJock-e

    StockJock-e Brew Master
    Staff Member

    Joined:
    Apr 3, 2016
    Messages:
    6,198
    Likes Received:
    1,591
    In the short term the market tends to run off human emotion too.

    Human emotion is not always right, some companies sell off hard for no good reason.

    Being a value investor you know how to crunch the numbers. Find the stocks that have sold off for no good reason, but still maintain favorable financials or are undervalued compared to peers in their industry.
     
    TomB16, bigbear0083 and Three Eyes like this.
  4. Onepoint272

    Onepoint272 Well-Known Member

    Joined:
    Apr 26, 2016
    Messages:
    1,199
    Likes Received:
    1,071
  5. Andrew Coleman

    Andrew Coleman New Member

    Joined:
    Jun 14, 2018
    Messages:
    4
    Likes Received:
    3
    I never really look at it as right or wrong. If the market presents an opportunity I take it and if it doesn't I sit. It all about what your looking to accomplish because you can make money in a up or down market.
     
    TomB16 likes this.
  6. mn_sho

    mn_sho New Member

    Joined:
    Sep 22, 2018
    Messages:
    10
    Likes Received:
    0
    everyone has its own style of trading and strategy to do it so whenever market prices comes to your radar than you should trade it and always follow mkt... when prices are not in radar than just analyse market . i think excepts sudden whipsaws due to news other time market is always right ....
     

Share This Page