Is the trick to stock investing to just do the opposite of what everybody else does??

Answer 1

It depends on your investing strategy. Every strategy has risks. Look up differet investing strategies at http://www.investopedia.com.

What you have identified is a basic contrarian strategy where one buys stock when no one currently likes it and then rides the wave when people start liking it again. They get out when it starts getting positive press reaping their just rewards.

Answer 2

No. The trick is to try to find high return and low risk. That takes tonnes of research which is why we have mutual fund companies. The problem with that is that they charge you for your time, which eats at your savings. So what's the trick?

Basically, you need to be in possession of a bond that has a positive surprise that no one expected. It's hard to do. The market is so efficient that as soon as something happens, everyone reacts instantly, so you can't just see an increase and say "I'll sell now". In the end, you won't make money like that. The price inherently reflects all investor behaviours, so that kind of strategy will not work every time. If it was easy, nobody would work, and we'd all be running around investing nonstop.

I asked my finance professor about something called "index funds" and it turns out they mimic the stock market's behaviour which means they grow better than risk-free bonds, but with considerably less fund management fees. And in the long run, it's guaranteed to grow.

This is even true in the worst scenarios, such as with the great depression. If people in 1929 didn't frantically sell all their shares, they'd have been fine after the depression was over since the stock market recovered, as it always does, in the late 1930s.

Answer 3

Well lets assume everyone else is buying a stcok. this will mean it's in demand and the price will go up. Therefore if you sold short and bought later when everyone else was selling (as a higher price) you would lose money!
So no it's not the secret - there is no secret - it's never quite that simple.
I think that when people talk about this theory there is the assumption that you are able to pick out the stock that people are seeling now that will at some point rise in price etc - it's about looking at expectations rather than just copying (and doing the opposite) everyone else.

Answer 4

Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/c8109

Answer 5

not really because the nature of the stock market almost all of the time is that for everyone selling, there are an equal number of people buying, and vice versa. This has to be the case because you cannot create or destroy stocks - they have to be traded from one person to another.
This is the reason why stocks change price so chaotically - to absolutely offset at every stage changes in demand for shares.

Answer 6

No the answer is to tactically buy low and sell high.....ahead of the market by watching key stock indices whilst bearing in mind the four typical phases of the market itself. It's simple really.

Answer 7

do you wanna lose all your money? where is the demand in the stock that you are buying?

Answer 8

So I've heard.

Whether its good advice is another matter.