Why recognizing a trend too late reduces potential profits

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Reference no: EM131231790

a. Explain why the notion that prices trend is central to the practice of technical analysis.

b. The earlier an uptrend can be spotted, the more money an investor can make by "riding the trend." Explain why recognizing a trend too late reduces potential profits for the investor.

c. The sooner an investor recognizes that a trend has changed, the more profitable the investor's trading will be. Explain why early recognition of trend reversals influences the investor's profitability.

Reference no: EM131231790

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