Great Traders Don’t Anticipate

The following statement crossed my desk the other day:

“The path to superior returns in the stock market is to anticipate changes in investor expectations. The question is how to do that.”

This statement is false. Great traders don’t anticipate. They surely do not attempt to anticipate “changes in investor expectations” — whatever that may mean exactly.

Great traders react to price movement. Great traders know that to anticipate is to predict. They know prediction is folly.