One thing I've noticed in the stock market is that people tend to buy in rising markets and sell during depressing markets. To an extent, it makes sense. I mean, buy when it's rising so you don't miss out and sell when it's falling so you don't lose more. Repeat this process twice and essentially, what you're doing is buying high and selling low. People always talk about having an edge in the market to outperform it, how about doing the opposite. Selling during rising markets and buying during falling markets?
Want another advantage? How about focusing some attention on $100m market companies. Some may say that if you do that you're taking on excessive risk (and most of the time you probably are) but not always. While others may say you're wasting your time because others would have invested in it already. That too may be the case but not always. This is slightly more complicated in that many funds cannot target such companies due to legal and other constraints.
A big advantage a value investor has over most others is attitude, for example the ability to exercise patience. Remember, your stock broker makes money on activity, while you make money on inactivity. Rather than constantly buying new issues or stocks you hear on the TV, why not hold fewer stocks and concentrate more attention to each one. A famous boxer once said, it's often the punches you miss that wear you out the most. When investing, you don't need to swing at every pitch. You may swing often and get lucky on some and hit them out the park, but most of the time this doesn't happen. Most of the time, the swings miss, and only end up hurting your wallet. My point is to focus on the ones that are to be hit out of the park. To do so, you'll need to be prepared to do your homework on companies. No one said it was easy, because if it were easy, everyone would be doing it. So what are you waiting for?
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