How do some investors CONSISTENTLY beat and make money in the market?

Question

Some people say that you should buy fear sell greed and go against the grain. This means though that you buy when the price is falling and go against what most people are doing. However if you follow this strategy you will keep buying as the price goes down but what if it goes down to zero like Enron???? Maybe the secret is buy fear seel greed but still cut your losses small like 7% ..... This is what william J o'neal says. Whay do you think is the key to some people beating the markeing and CONSISTENTLY making money even in bear markets as some people do???

Answer 1

View It Now: http://www.stockEXE.com

Answer 2

When you get on a bus, check that it is going in the direction you want.  If it makes a turn, maybe that's ok, but if it gets on the wrong freeway, change buses.  Probability of a bus headed where you want to go is higher than hoping that other bus will turn around.

Never listen to someone else to find which direction that bus is going, check it out for yourself.

Never evaluate the bus by its brand, the color of the seats or the personality of the driver.

Most traditional methods of stock picking have little to nothing to do with the price growth of the stocks.

I use finance.google for charts, best ones I've seen in 30 years.

I use finance.yahoo to make up a bunch of test portfolios for keeping an eye on stocks that I may get into later.

Finance.google has a stock screener that is easier and faster than any I've seen.

Here's a few good picks and their 12 month price growth:

ANR 419%, BZP 335%, CWEI 345%, CLR 365%, MOS 385%, POT 229%, JRCC 256%, WLT 222%, CF 268%, AXYS 201%

Answer 3

value investing

Answer 4

Buying when there is blood in the streets will not work if you buy any stock.Like nowadays financials are in the dump. If you just buy any of them you may be in for a big shock when dividends are slashed and stock goes to single digits or worse..

So the trick here is to build a portfolio that has the following:

1. Long-term hi-quality/hi-yield stocks

2. Some mid cap stocks

3. Few Small cap stocks

4. Some funds (ETFs/CEFs/Mutual Funds)

Depending on an individual age and risk tolerance the above three can be allocated.

A good hi-yielding stocks would be a bank  like Royal Bank of Canada (RY) which has an excellent dividend yield and has consistently performed very well over many years. RY is the most profitable bank in Canada. Some other high quality stocks include Detriot Utility (DTE), FPL, RWEOY, Railraos like Norfolk Southern (NSC), Canadian Pacific (CP),etc.

For small and mid-caps the best strategy is to tons of research and identify a few and then invest a little in each of them. These provide some real "kick" to a portfolio when some of them multiply mnay times over. Agrium (AGU) is an example that jumped from under $20 to nearly $100 now.

Small and Midcaps have higher risk and don't pay great dividends. Easier way to do this would be to go with mutual funds or ETFs.

Finally you have to have some fixed income in the portfolio. This can include municipal bonds ("Munis"), corporate bonds, ETFs like Pimco High Income Fund - PTY etc.

Folks who have done in the above manner have beaten the market ...consistently.

Answer 5

Its to do your homework,  and like you said know when to get out