How to avoid random walk markets

The random walk theory is a theory that explains that “the movement of stock prices cannot be predicted.” Simply put, no matter what has happened in the past, there is always a 5: 5 chance that tomorrow’s market will go up or down.

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very good thx for info :heavy_check_mark:

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Not to mention - The Non-Random Walk Markets Theory which suggests that valuable information can be extracted from security prices.

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Very interesting. :thinking:

Yes, that’s true. You can never predict how the market will react in the coming time.

Timing is the key when lots of factor in ur favor u should react quickly!

EMH implies that important for price information should be instantly priced in. In my view this is unrealistic assumption because investors’ capability to process information and make decision takes time. You can’t also deny there are irrational moves on the market (like Hertz stock price recent moves despite its bankruptcy). So I think it is at least theoretically possible to predict stock or currency price behaviour.

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yes its possible to predict but u must operate on factors to avoid zombie assets :radioactive: