The Market discounts the Future, and not the past and Obvious.
Let us understand this with the help of Windshield Theory -
So, what is more, important when you drive a car. It's obvious - what's ahead of you. That's why you’ve got a big windshield on the front of your car. For what has happened in the past - there is a small rearview mirror. And the reason the windshield is so large and the rearview mirror so small is because what’s happened in the past is not near as important as what’s in the future. Remember, Where the market is going is much more important than where it has been.
What does this mean?
The most important information available in a market is how it’s acting right here, right now. And to understand that - all you need to do is keep your eyes open. Focus on the present, because you cannot daydream/worry and drive. Lots of times, it's bright sunny morning and beautiful day but you ruin it by worrying about something that does not matter today. All that matters in the market - look ahead, drive carefully and enjoy the present.
Because it's not always sunny and when market turns for bad - it does show up
So enjoy as long as you can see things clearly.
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers