Is it possible to find and use the best universal principles and systems in Stock trading? The second question - is it possible to make money using methods, systems, or ideas that are employed by many? It seems collective actions can be beneficial. If there is an uptrend - many would join the movement and add more pushing power up. Although a crowd behavior could be useful, sometimes, it can lead to unexpected results.

As example, many thought that February could be a good month to invest because institutional funds' managers could increase their portfolios in March. Many converted cash into stocks in February pushing market up. Then when buying power exhausted and funds were unable to support the trend - the stock market collapsed. Another examples, several years ago October was a low month but since too many talked about this annual cycle, it is not the case anymore - everybody buys in October and pushes the market higher.

In other words, if a group of people read the same book, for example, "How to Find Mushrooms" and all go to one forest - then there would be more chances to find mushrooms in the places that are not recommended in this book. The conclusion - stock trading can be successful also in case of using something new or something that is used by limited number of traders.

© Alex Shmatov. Published with permission of the copyright owner. Further reproduction prohibited without permission.