There are basically two kinds of traders in stock markets; one kind includes those who follow fundamental investing and the second kind are the speculators. The major difference between these two kinds is the way they see the price of the stock.
The investors who follow fundamental investing give less importance to the price of the stock when compared to the speculators. Such traders are more concerned about the fundamental strengths of any company. To make good money in stock markets, one should practice the fundamental method of investing.
For many traders, the decision to buy or a sell a stock is mostly influenced by their acquaintances. So, if everyone around them is investing in any particular stock, a potential trader too tends to invest in the same stock.
Avoid such practices as such strategies do not work well in the long run. World's greatest investor Warren Buffet was not at all wrong when he said that one needs to be fearful when the others are greedy and needs to be greedy when others are fearful.
By trying to time the market, one can lose one's hard earning money in no time.
A number of expert investors do advise not to time the stock market as no one has ever done this with success.
It is really not possible to accurately catch the top and the bottom prices of any stock. Never follow such a strategy if you are planning for investing in delivery.
