Can I crack the stock market by using the opposite of logic action?

Question

Hi all!

I was wondering: so many smart people trade the stock market using certain methods and mathematical indexes. This causes the market to act in a certain way.
What will happen if I turn the logic arond any try to trade by doing exactly the oppisite of what all the indexes and well-known trading methods tell me to do?

Shouldn't I get rich in no time??

Thenks!

Hi everybody,

My idea was to make a small provocation and see what comes out of it. I actually plan on trying to trade against the logic won from juggling with known indexes just to see where it might bring me to.
I guess you know this case of 10 well known brokers trading against (not well known) monkey - and some monkeys were better then some brokers...

But I consider this as an experiment that would maybe teach me some new insight about the stock market.

Answer 1

You're logic is flawed. Not EVERYONE who invests uses the same identical methods and/or mathematical indexes, AND not all of them have an affect on the market.

Many, MANY different techniques are utilized... and your's would just be one more of thousands of "get rich" plans.

Don't quit your day job.

Answer 2

Yes! Absolutely! :-)

In fact, I believe you might want to be a contrarian. And many of this type of trader do fairly well in the market.

The important thing to remember is whatever strategy you use, backtest (and forward test if possible too) it. Be disciplined and manage your position size.

Those are some of the biggest mistakes that people make. Finding ways to make money in the market is easy. Following the steps that are required to be disciplined and manage position sizes, cut losses short is the part most people have a tough time with!

Answer 3

final analysis the inventory industry became bottomed out at approximately approximately 7000, in final 3 yearrs and then final week or 2 industry became hitting 12000. Take the intense selection divide via the low for the ratio proportion distinction i.e income. i'm getting a ratio divide the bigger selection via the smaller if a million.7142857 or approximately 171% advance that's in basic terms math - do the maths on the Dow Jones commercial popular for the dates in question. sure you're able to of bought an ETF that tracks the DOW and made 171% on it. with the aid of fact of this you purchase low sell intense, no longer the opposite with the aid of fact of this chasing apple inventory now's stupid that's all waiting maxed out (yet with the aid of fact apple walks on water it may shop going). now's the time to purchase international shares with the aid of Greek bailout comparable subject will ensue lower back yet stay far flung from financial shares with the aid of poisonous loans ok i'm off subject remember have a stable one.

Answer 4

There is no way to do the oppposite all well known trading methods tell you to do. First of all, most of the time well known trading methods tell you to do nothing (absence of a signal is a more common occurrence than presence of a signal). Second, it is not uncommon for technical trading indicators to produce conflicting signals.

Answer 5

No but you could get into political office

Answer 6

If it were that easy, everyone would do it. Believe me... people have and are trying just about anything you can think of.

Answer 7

you wanna crack the market?

tough luck...consumer/investor confidence ***** everthing up. when the news is good, people feel happy and invest; when it is bad, people **** their pants and sell. its stupid and makes no logical sense. other factors affecting consumer confidence..the weather..its true. raining on wall street snow...check it out.

Answer 8

I suggest you to see the film "Pi"