Yesterday we discussed: How is sentiment priced? The true relationship between community influence and market trends.
Predicting the market is actually a psychological battle, far more complex than it seems.
You'll see a bunch of people rushing in based on emotions, driving prices to absurd levels, only to have them plummet back to their original levels once the sentiment subsides 😂
Like the examples @ZhanweiC mentioned yesterday:
🟦 The Trump incident: A single catalyst pushed the probability of a win from 50% to 80%, only to see it drop back down once the hype died down.
🟦 The US December interest rate cut prediction: Everyone agreed there would be a cut, with the probability soaring to 50%+, but an update completely reversed the trend.
These all remind us that: Predicting the market isn't about predicting the future, but about pricing in "current sentiment." It reflects not what will happen next, but the direction and imagination people are willing to bet on right now.
‼️ It's important to note that events aren't one-off events; information is constantly being updated, and prices will continue to change.
Therefore, don't take a single moment's data as the truth, and don't get overly involved in a single event.
Because the essence of market prediction is to tell you "what everyone is thinking right now" amidst uncertainty.