Seven Ways People Get Filthy Rich in the Stock Market
From the Dumbest to the Smartest Way
I have a few scenarios I built in my head. I’ll start from the stupidest and go to what I think is the smartest. Or at least what I regard as the most respected way to get rich — which happens to align with the most consistently reliable way, too.
- Buy low, sell high.
This is so simple that it pains me to put it on this list. However, we are going from the worst way to the smartest way, so this point has merit to that degree.
This method never works. It’s not that it’s used incorrectly, it’s that it neglects key components of one part time and one part emulation. It’s not that the method is bad, it’s that the method pauses the hidden variables responsible for the vicissitudes in the stock’s price.
What do I mean?
When it comes to buying low, you have to know what low is. Low might look like a 52-week low, but that’s only because you are looking at a company’s forecasts from the standpoint of 52 weeks. Many times, a company stands at a 52 week low, but they’re about to drop even harder because of setbacks that they haven’t recovered from or because competitors are about to eat the rest of their worth.
