In the market, perhaps the most common mantra you’ll come across is, buy low and sell high. However, that’s easier said than done. Sure, you can filter for securities that have suffered red ink. You can even take it a step further by referencing certain methodologies within technical analysis, such as focusing only on stocks that have triggered oversold indicators.
Here’s the problem, though: anyone can adopt the simple contrarian approach of buying deflated securities. If this approach were even mildly successful, it would spark copycat movements and deliver millions of successful day trading aficionados. However, reality tells a far different story.
