Markets are made up of people whose decisions form market dynamics and create repeated patterns. This notion represents the concept of behavioural economics.
You don’t have to be a genius to know that the way to make a profit is to buy cheap and sell high — that much is clear. The tricky part is figuring out when the price is cheap and when it is high.
The time value of money dictates that the price of an asset appreciates over time. In essence, the longer you hold an asset, the higher the price you can expect to sell it for in the future. People who understand this concept aim to increase profits by holding assets for longer.
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