Random Walk Theory is an investing theory created by Burton Malkiel, that states that stock prices do not follow any trends, but makes random ups and downs, which makes it impossible to predict the direction of any stock, and therefore, market as a whole.
Follower of random walk theory believes that market can not be outperformed without taking on additional risk, disregarding both fundamental and technical analysis. Meanwhile, critics of this theory carefully pick entry and exit points on investments in order to beat the market, and lots of them do have a lot of success.
