Posted by calvintaneng > 2015-01-15 14:35 | Report Abuse

Correct clear cut conclusions

a) That playing the trend is the standard formula of stock market trading by the general public.

b) that the general public loses money in the stock market

The word "loses" is underscored.

Calvin comments,

By the time A Stock has Come into the attention of the "general public" it is usually selling at a premium; and therefore no longer a bargain.

And a "trending up" stock usually draw in the attention of punters & speculators while those who invested early are selling to reap in the profits.

So those who "chase" trending stocks of the day will "over pay" for its exuberance.

Conversely, those who bought undervalue stocks out of favour are "boring" and "dull"; therefore they are generally avoided by the market. Yet these boring and dull stocks with value will one day trend up.

So the Contrarian Investor who invest differently from the General Market Will be making the money while the majority who "chase" up "trending" stock will eventually lose money.

This behaviour in human nature is flawed & by following "greed"and "fear" we are bound to fail. Both in Ben Graham times & also equally true in our time also.

Posted by willnck > 2015-01-15 14:45 | Report Abuse

Dont follow greed and fear.Go against them.Easier said than done though..