Contrarian Investing
When the stock market starts going up, most people are, initially, scared to step aboard. It's not until stocks have gone up a long way for a long time that most investors become interested and start buy­ing. On the other hand, when stocks start dropping, most investors are not afraid. Their courage has been bolstered by the steadily rising tide. Only because the market has risen a long way, investors believe it will keep going up. It is almost a gold-rush mentality.
Contrarian Investors buy on bad news, and sell on good news. "Buy low, sell high" is a well-worn cliche. But it's well-worn for a good reason:
That's how an investor must think in order to make money.
Free trading tips: http://www.stockadvisorgroup.com
About the Author
Stock Advisor Group Editorial Team. You can re-publish this article as long as you provide clickable links to the source [www.stockadvisorgroup.com]. A courtesey email to info@stockadvisorgroup.com will be appreciated