Contrarian investing in stockscontrarian investing and other techniques CLICK HERE. This type of investing is probably way different then any other type of investing that you have probably ever heard of or seen before. As far as investing in stocks by market experts, it's RARELY seen. Basically the more a stock goes down the more you should invest in it and the more it goes up the more you should divest yourself from it. Some people have claimed that going against the heard and being contrarian is the same technique as value investing since the only way to make money in value investing, is to buy undervalued securities that are priced too low. So it must work the same way because most people usually make stocks go to low in price and many times too high for that matter.
Most market moves going either up or down are way overblown and exaggerated by fear greed or emotion. The crowd usually uses these emotions to make so called good business choices. I will sum this up again in case you didn't get it. Most market moves are over exaggerated and are not happening for any business purpose. There is another side to this with what this type of investing will do for you if you choose to follow it. Even if a company is doing poorly, they usually come back up later, and when a company is doing well, something bad usually happens. It's like that in life too I think because when things are going bad they usually get better and when things are going good they usually get worse.
How to use market moves for investing in stocks properlyPeople look at a stock and think this is scary I am selling on the bad news. The stock price falls and you the contrarian investor just have to start buying. Later on down the road their sales go up and people all thought they were doomed. Most people are too pessimistic or optimistic and there are total extremists on both sides of investing.Also no matter what you choose to do in the market I think that if it is not uncomfortable than it probably won't work. If what your dong seems easy and comfortable we would all be doing it and become rich. We can't all become rich though which is why I am here to try and help you with the idea on going against the herd. Just remember though that sometimes stock prices falling DO have a meaning to them. Most companies especially the larger ones and small caps with good fundamentals have no purpose in falling except that people are scared. You don't want to be one of the people in the herd that is losing money do you? |