Pattern can indeed be followed. That is why people advise that you should buy low and sell high. This is simple on paper, but it is one of the most difficult things to do when investing. We can see that with stats because it shows that most people find it difficult to follow the simple pattern and it is almost impossible to do. This is one of the first things they will tell you if you’re trying to invest in stock crypto or anything related to the financial market.
Why is it almost impossible
It is almost impossible for you to invest based on timing because life and different situations and scenarios are happening to us all at once and we have to attend to them. What I mean by this is, you want to have fun, take care of your kids, want to invest, and want to leave a good life which makes it very difficult to hold and keep money till the market drops to your desired price. Even when the market drops down to your desired price, it is most likely to drop down more which can bring about confusion.
Market doesn’t respect anybody’s opinion so while you might be thinking that a certain price is the lowest a stock or a Crypto can go market can change. When you keep investing at the lower prices the market can keep going down to the point where you question what you're investing in. You can get tired and you might have exhausted all your money just in the name of you trying to buy cheap or buy low.
It is always better to find a way to stay in the market, rather than trying to time the market
You can’t time the market because you also have your own life. There are so many things that need fixing in your life and you can also have emergencies too that you have to deal with. Saving money just to buy low might be impossible because emotions will always set in and you might even use the money to buy something else. That is why the better option is to always find a way to stay in the market and the easiest way to do this is to dollar cost average.
One dollar cost average simply means is you are investing a certain amount of money regularly. It might be every week every month or every day but this doesn’t follow any particular pattern in price. You’re not waiting for the price to drop before you buy, you’re just buying just to stay in the market to wait for a very nice opportunity. Most people who do dollar-cost averaging know that you can't time the market because you also have your own life to live, but you can stay in the market to get the right opportunity.
Thanks for your time.
