Tuesday, August 01, 2006

money in stock markets by contrarian

Many investor fear markets and this fear is making them close there position intraday itself making them more of an intraday trader. Wat people fail to understand is markets are more brilliant than all investing public it never gives u a clear chance to make profits when all people have panic in mind markets open lower and u cant sell and when all are bullish markets opens higher and u cant buy. So how is money made in stock markets in my view would be contrarian investing which is simple to say and hard to follow. And here also there are few thumb rules when all want to sell if the stock doesn’t move down the buyer is brilliant so avoid selling. And whole markets are buying and the stock is not moving up then think the seller is brilliant. As majority can never be right in a market place and whenever there is buying frenzy top is almost reached and when ever there is selling frenzy bottom is near and when whole markets is confused jus stay away let them first have clarity as 15-20% of the time majority is also correct.

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