Let me put this with the help of a simple analogy. Most of us must have heard the story of 'Elephant and the Blind men'. For those who have no clue, I am putting it here again.
Trading and Investing is no different.
A group of blind men heard that a strange animal, called an elephant, had been brought to the town, but none of them were aware of its shape and form.
Out of curiosity, they said: "We must inspect and know it by touch, of which we are capable".
So, they sought it out, and when they found it they groped about it. In the case of the first person, whose hand landed on the trunk, said: "This being is like a thick snake". For another one whose hand reached its ear, it seemed like a kind of fan. As for another person, whose hand was upon its leg, said, the elephant is a pillar-like a tree-trunk. The blind man who placed his hand upon its side said the elephant, "is a wall". Another who felt its tail described it as a rope. The last felt its tusk, stating that the elephant is hard, smooth and like a spear.
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