
Caleb Franzen|Feb 15, 2025 15:40
The phrase "don't confuse brains for a bull market" is fascinating, because we can extrapolate it a few ways:
1. The fundamental analysis you used to buy a stock wasn't right, it's just a bull market.
2. The TA you used to buy a stock wasn't right, it's just a bull market.
Which therefore begs the question, isn't recognizing the broader market theme, direction, and trend arguably more important than any other form of analysis?
If any form of analysis is outweighed by the simple direction of the trend, then what is the point of conducting that analysis or using that analysis to actively make decisions?
Is there any point in conducting any form of analysis beyond the simple recognition of the trend?
I saw a lot of technicians get super bearish last month.
To their credit (but only a few of them), they got bullish again recently.
But I guarantee you that I outperformed them by just sitting on my hands and recognizing that we're in a bull market, which will resolve higher again at some point.
They got chopped up, cut positions, re-entered positions, babysat their portfolio, and had to actively manage through uncertainty.
I embraced the short-term pain, did less work, sat on my hands, and generated better returns because I simply understood that the bullish uptrend was intact.
It's literally the bell curve meme, but just for bulls.
I'll think about this more, but either way, it proves why price is the arbiter of truth.
Share To
HotFlash
APP
X
Telegram
CopyLink