Traders who participated in an investing experiment were able to view headlines a day in advance, and 1 out of every 6 of them suffered financial losses.

Investors must accept uncertainty in the market as a given. Regardless of how confident you are in the market's direction, there's no way to predict the future with certainty.

If you possessed a proverbial crystal ball, would you be interested in learning how a recent study from Elm Wealth tested the idea with 118 adults, 90% of whom were in graduate finance or MBA programs?

In November 2023, participants were given $50 and the opportunity to trade the S&P 500 and 30-year Treasurys based on information from The Wall Street Journal's front page 36 hours in advance, with dollar figures and asset prices redacted. The game, which can be played online, featured old headlines from 15 trading days - one per year from 2008 to 2022. Participants could trade as if they knew the future a day before the news broke.

Although the participants had impressive credentials, the results were disappointing. Approximately half of the participants incurred a loss, and 1 in 6 ended up bankrupt. The average gain was a meager 3.2%.

Even with expertise and access to advanced information, accurately predicting the outcomes of investments over the short term is a challenging task.

"According to Sam Stovall, chief investment strategist at CFRA, in the long run, the best course of action is to purchase, maintain a hold, and keep your eyes closed. Newspapers can only help investors play a losing game of Whac-a-Mole."

Short-term information is unlikely to help over the long haul

Despite receiving advance notice, the investors in the study were unable to get it right.

Even though you have a general understanding of how markets operate, there are no definitive rules. For instance, while an interest rate reduction or positive jobs data may typically boost stocks, it's not a certainty.

Stovall says that one analyst may interpret a piece of market data as a sign of an upward trend, while another may view it as a harbinger of market downturn.

Stovall says that when reading market takes, whether in advance or not, it's important to remember that you're getting someone else's opinion, which could be incorrect.

Despite having prior knowledge, the traders in the experiment were uncertain about the size of their bets, and there was no correlation between their likelihood of being right and the amount they invested.

Investing is challenging, even with information access, as it involves making the right decisions, such as determining the right investment size and selecting specific companies to invest in, according to Doug Boneparth, a certified financial planner and president of Bone Fide Wealth.

How to invest when you don't know the future

It's usually wise for the average investor to steer clear of attempting to predict market fluctuations in the short term. Instead, they should leverage the long-term upward trajectory of the broader stock market to amass wealth over time.

"According to Boneparth, the best approach for most retail investors is to be a passive investor, keep costs low, and control emotions during market fluctuations. This disciplined, long-term strategy has proven to be effective, but it can be dull."

While investing in a diversified portfolio and holding it over the course of decades is a proven method for building wealth, it's not an exciting prospect during the process.

Stovall argues that news outlets cover the daily fluctuations of financial markets to make for more engaging reading, while he believes that short-term investing is merely a form of entertainment.

To keep your blood pumping while trying to predict market trends, it may be beneficial to allocate a small portion of your investments for speculative purposes.

"He advises diversifying your portfolio, but if you want to make trades and engage in such activities, do so in an account where losing everything wouldn't be a concern, as it's all for entertainment."

Improve your AI abilities and increase productivity with CNBC's online course "How to Use AI to Succeed at Work." Skilled instructors will guide you through getting started, practical applications, effective prompt-writing, and common pitfalls to avoid. Register now and use the coupon code EARLYBIRD for a 30% discount off $67 (+ taxes and fees) through February 11, 2025.

Sign up for CNBC Make It's newsletter to receive expert advice on work, money, and life.