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There is No Absolute in the Market (市场里没有绝对)

There are always question in the market seeking for answers, but little do they know, there is no absolute in the market. Some may ask why, but let the writer asks you, is fundamental analysis or technical analysis can make more money? The writer believes different people will give different answers, yet the person that provided the answer will also be unsure about their answer.

Another question we can see in the recent market, is growth stock or value stock better? Again, there is no answer to this, as both types of investors can earn money. Looking at the fund managers, some may focus on collecting value stocks, and some may be keen to buy growth stocks, yet both of them will be profitable, but maybe in different times. Different style of investors will make profit from the stocks that suit them. A growth investor will not have the patient to wait for the capital gain from value stocks, and a value investor will not be holding a growth stock for long as they will be too overvalued.


Other than choosing companies to invest, a single company can also cause conflict. When the share price of a company slump, should we buy the stocks? Some will say yes because it is a new low, and some will say no because there is no sign of reversal. The writer believes a lot of people faced these two voices when they are investing or even trading.

Since there is no absolute in the market, what is the only thing you can trust? News can be fake, announcement can be delayed, management can be changed, hence the only you should trust is yourself. Regardless of what kind of techniques you used, you must be confident on your decision, and not easily influenced by others. Obviously, your own decision may be wrong, and you need to have the bravery to admit your mistakes and move on.

In short, stock market is very interesting as there is no an exact or absolute answer. You will need to do your own research and stick to your decision, without getting affected by external factors. The only thing matters is your own profit and losses, and should not focus on others’ profitability.






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