“People want to buy cheap and sell dear; this by itself makes them countertrend. But the notion of cheapness or dearness must be anchored to something. People tend to view the prices they’re used to as normal and prices removed from these levels as aberrant. This perpective leads people to trade counter to an emerging trend on the assumption that prices will eventually return to “normal”. Therein lies the path to disaster.”
Quote by William Eckhardt
Author
William Eckhardt
William Eckhardt, born in 1955, is a renowned trader known for his unique trading strategies and exceptional investment performance in the financial markets. more
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