Post
Topic
Board Speculation
Re: Here we go again, another major price drop for bitcoins
by
defxor
on 01/09/2011, 18:05:16 UTC
Many people have given your examples of how you can beat the market.  e.g. investigating company fundamentals that others haven't noticed e.g. spotting patterns that nobody else has.

... and there's no support for the hypothesis that anyone has ever beaten the market trying to do that. That's the whole point. A lot of traders claim they do, but every time (plenty) anyone has looked into this it turns out that there's no predictive ability involved and the number of traders who beat the market is the same as is predicted by chance alone.

If you're really interested there's a lot of literature on the subject available. Taleb's "Fooled by randomness" is a great start.