Thursday, February 21, 2008


· The crowd is usually wrong, go against the crowd.

· When everyone expects the market to decline, prices will rise; and when everyone expects the market to rise, prices will fall. Markets tend to do exactly the opposite of what everyone expects.

· In the early stages of majority opinion, it pays to follow or precede the crowd

· Contrary stock market action pays off only when timed to coincide with the last stages in the consolidation of a widespread majority viewpoint.

· Sell a stock below the anticipated peak price. Always leave a little margin for the person who buys the share from you.

· Buy and sell stocks at intermediate levels. To put it in perspective, "Sell, regret and grow rich."

· The bulls make money, the bears make money, and the pigs go broke.

· Never buy/sell in line with the prevailing market opinion.

· Habitual non-conformity is no more profitable than habitual submission to fashion.

· Buy when others are selling, and sell when others are buying. That is a buy in depressed markets and a sell in boom markets.

· Always ensure that your stand is supported by reason and logic.

· When majority opinion begins to dominate the market, watch for crowding in contrary opinion.

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