In my previous blog, I showed that investors tend to chase trends but don’t do a good job relative to a passive buy-and-hold investment strategy. Since you may not be convinced by research based on aggregate data, here’s a simple test of your prediction skill.  Below are eleven charts of daily “stock prices”. Only 5 of these charts are the prices of real stocks. The rest are fake prices, generated based on a random process much like flipping an unbiased coin. The test: identify the 5 real stocks (answers are at the bottom).

Answer: Series number 3, 5, 7, 9 ad 10 are real stocks. 

Advertisements Share this: Like this: Like Loading…