Finance

In: Business and Management

Submitted By Awais2034
Words 2460
Pages 10
There is an old saying when it comes to the
markets: investors are like sheep. And, just like
sheep, most investors follow the herd aimlessly
without a real understanding of what’s happening
around them. This is also why most investors can’t
outperform the market: they’re part of the flock.
Following the crowd almost guarantees that an
investor will lose money over the long term. The
goal of any investor is actually to step back up on
a hill overlooking the flock and watch where the
sheep have been and where they’re heading. Be
ahead of the crowd, not part of it!
Most investors will make several mistakes in
2012. But, by being a contrarian, you have the
possibility of gaining long-term wealth by taking a
different stance than the crowd. You must be careful
not to just do the opposite of what everyone else is
doing; rather, make sure you have a well-researched
and thorough understanding of the market
landscape to understand where opportunities are.
We’ve analyzed the markets and identified six
potential mistakes that investors might make in
2012. Of course this analysis allows people not only
to avoid these mistakes and prevent losing money,
but it also offers the opportunity to make money.
This analysis will reveal the six opportunities of
which the majority of people aren’t aware. By the
time the mass public becomes aware of them, these
opportunities will already be gone.
Investor Mistake #1: Not Recognizing
the Makings of a Classic Bear Market
Trap in Stocks
Following the financial crisis of 2008, the stock
market made a bottom in March 2009; since then, it
has rallied quite strongly. Some investors are getting
too complacent in the rise and are assuming that a
new bull market is here. Some analysts on TV might
cite a rebound in housing, low interest rates, strong
corporate earnings, and other seemingly positive
reasons as to…...

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