Financial Education: The Importance Of Cycles
We live in a universe that is cyclical. Things keep repeating themselves. Nowhere is this more true than in markets. Remember, markets are deeply influenced by human behavior. Hence, we can see the ebb and flow of sentiment in operation.
In this video I discuss how vital it is to understand cycles. It is true the "trend is our friend". However, "buy the dip" stops working when it is a trend reversal instead of a dip. Very little just keeps going in one direction in a straight line. This is a fact we are all well served to remember.