Module 5 — Reacting, not predicting
Why prediction fails
5 minute read
In plain English
Prediction asks what will happen. Reaction asks what is happening and what you will do about it.
Why it matters
Nobody can consistently predict short-term prices. You can, however, define your response in advance.
Example
Instead of 'this will hit $4', you plan: if it holds above $3.10 on rising volume, I do X; below $2.95, I do nothing.
Try this
Rewrite your last prediction as an if/then response plan.
Common mistake
Attaching your ego to a forecast.
What this does not mean
Reacting is not a way to be right more often. It is a way to be prepared.
Educational content only. Not financial advice.