What stops someone from just selling a stock at every peak and buying at every dip? Wouldn’t you be making money either way the stock goes?

Question

What stops someone from just selling a stock at every peak and buying at every dip? Wouldn’t you be making money either way the stock goes?

In: 3

Answer 1

Its very, very difficult to predict when a peak or dip will happen. A stupidly small number of stupidly smart people are able to predict the peaks and dips at a higher rate than anyone else, but they keep this knowledge secret. If everybody could predict the peaks and dips the peaks and dips stop being predictable.