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No matter how well a trader does in the market, they can always find traders online than have done even better. But the better a trader has done in achieving huge gains, the more dangerous it may be to follow his or her recommendations.
Investors suffer from a long list of psychological biases that can adversely impact their success in the market. One of the most dangerous biases for investors is a phenomenon known as survivorship bias.
What Is Survivorship Bias? Survivorship bias is the tendency for people to cherry-pick people or strategies that successfully made it through a selection process and ignore all those that failed. People tend to focus on these survivors, even if they survived in large part due to luck rather than viability.
This is the second of three articles on the outlook for 2021.Â
In the first article I focused on Raymond Lo (Feng Shui Master), the Year of the Metal Ox and the potential for both more disaster and better times, depending upon where one looks.
Moving from astrology, with the Dow now over 30,000 (give or take), we have a good pivotal number to watch as 2021 begins.Â
The rotation into the iShares Russell 2000 [IWM] should continue and a dip or correction, especially if it gets closer to $170, would be welcomed. Along with IWM, Retail and Transportation are two sectors that we will also look to buy on a correction.
Dubai: With Bitcoin prices soaring this week, multiple market gurus are now sounding the alarm on how it is bordering at dangerously high prices, while warning of the cryptocurrency’s inherent risk and predicting an imminent just as massive drop.
Beyond the positive news of vaccines being either manufactured in bulk or rolled out in different parts of the world, this has been a week of historical gains for the largest cryptocurrency in the world by market cap, Bitcoin.
On Wednesday, December 16, investors witnessed Bitcoin blow past its previous high and eclipse $20,000 (Dh73,456) per token (unit of Bitcoin, BTC, i.e. ‘bitcoins’). In fact, Bitcoin went on to also blow by $21,000 (Dh77,129) and $22,000 (Dh80,802) merely within a matter of hours, a rise widely seen among analysts as ‘unprecedented’.
JPMorgan says flows into major crypto fund are key to Bitcoin s outlook bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.
Major crypto fund key to bitcoin’s outlook: lender
Bloomberg
The odds of a bitcoin correction would increase if the flows into the world’s largest traded cryptocurrency fund slow significantly, strategists at JPMorgan Chase & Co said.
The Grayscale Bitcoin Trust’s assets under management have climbed to US$13.1 billion from US$2 billion at the start of December last year, amid a tripling in the digital currency’s price so far this year.
Inflows into the fund are running at about US$1 billion per month, the strategists led by Nikolaos Panigirtzoglou wrote in a note on Friday.
A representation of virtual currency bitcoin is pictured in front of a stock graph in an arranged photograph taken on Nov. 19.