A post regarding fighting the trend in the stock market from Yahoo board

Re: the only reason (if there is any) ..
by: turnipfarmer99 (41/M/Georgia)
Long-Term Sentiment: Buy 04/11/05 05:36 pm
Msg: 37416 of 37434

"makes me think that cyd may go down is that too many are expecting it to go up. usually, the stock price goes against the majority's expection. "

This statement of yours is in many heads of new investors/traders. The flaw of it is extremely harmful to average investors. The statement is trying to say is that "The crowd is usually wrong, or wrong most of time". It is also trying to say that "only a few wise heads can make money in the markets".

Let me quote a successful trader, Shawn Andrew(Ricercar Fund)'s experience as a correction of yours(belief).

"The CROWD is always wrong at market turning points but not often times right once a trend sets in. The reason many market fighters go broke is they believe the CROWD is always wrong. There is nothing further from the truth. Unless volatility is extremely low or very high one should think twice before betting against the CROWD."---2001.

I have nothing to add if you understand plain English.