Watch What Everyone Else Is Doing.........And Do The Opposite!

Established investors among you will have seen this kind of statement time and time again.  For those of you who are new to investing, you need to embrace this idea.

The best time to invest in a stock is when short-sighted investors over sell and beat down the price to protect their short term positions.

The key, as I have said before, is to look at the fundamentals and the long term outlook.  This will mean that you will go against that crowd and you will often be buying when everyone else is selling.  You must be bold and you must be patient.  You will get your rewards when the market recovers.

This is not true for every form of stock, so you must do your due diligence, but my key point is this:  You should try to buy when the market dips, not when it rises.  In other words, see what everyone else is doing – and do the opposite.