The trouble is investor's life does not last that long. If u invested in 1898 and withdraw in 1950, u almost got no increase. Does it count for inflation?
Survivorship bias. All the dead companies are buried and quickly forgotten. Where's the index of all the companies that used to be included but where dropped...?
If you hold investments that long of years... You are not going to enjoy the profits because most likely you'll be dead and your children would have inherited your stocks. Same kids that would have cashed it all in, bought mansions, vacation homes et cetera until they went broke. The few that had money probably gave it all to Bernie Madoff and we all know what happen to that money. Mark
Charts never have and never will tell the whole story. Many in this thread are conveniently overlooking the compounding of reinvested dividends.
What one decides to do with ones money is a personal matter. Some people make good choices and some make bad. The best choice will always be the one that makes you money and vice versa. A chart is nothing more than a picture. Like our famous woman the chart can mean one thing to a person and another thing to a different person. This is why we have a market. But this is all common talk as you all know. So why do some traders make such a big deal about charts? Why do some swear that P&F charts are the best, others that candles do it for them and of course we have the good old reliable tried and tested bar chart that is the preferred choice for the commodity traders, the real markets. What can an ordinary Joe Soap trader do that will make a difference to the choices he makes? Is it possible that the answer might not be in looking at the chart in one of its many forms but might be in looking at one of the chart forms different to the way that most look at them? What might this show a trader if anything? What will the result possibly be? Will it make any difference at all and if not why not? Why might it make a difference for one trader and not for another? Why do some people look at a painting and clearly see what the artist was thinking when he was stroking the canvas while others could stare at it for weeks and not see anything but different colors and familiar shapes? Before one can see the chArt of Deception one must first be aware that it actually exists for it is very hard to see something that you do not know exists. Then it becomes possible to make better choices and thus see better results.
Here is a link to info regarding candle charts. If you were asked to choose one of the pictures on this page which one would you choose? Take your time and consider your choice as you may be asked to explain why you chose the picture? http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:introduction_to_cand#history
The only reason I ever have a default chart monitor is for the fade. Dumb money's either itching to get in or too scared to move. Collectively coming to the same conclusions again and again.
Mona on the left is referred to as a "saucer" pattern. Mona on the right is called a "cup". Cup patterns "breakout". Mona on the right is ripe for a breakout.