IHL 0.00% 4.1¢ incannex healthcare limited

When it comes to buying stocks, My strategy that's been...

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    When it comes to buying stocks, My strategy that's been successful is to buy when the market is not interested in the companies I believe in. This is often referred to as "contrarian investing."

    The idea behind contrarian investing is that the stock market is often driven by emotions and short-term factors, rather than long-term fundamentals. As a result, stocks can become oversold or overbought based on short-term news or sentiment, rather than their underlying value. This can create opportunities for investors who are willing to look beyond the current market trends and focus on the fundamentals of a company.

    One way to identify potential contrarian investments is to look for companies that have been overlooked or undervalued by the market. This can include companies that have been hit by negative news, or have a business model that is out of favour. However, it's important to note that just because a company is out of favour with the market, it doesn't mean it's a good investment. It's essential to conduct thorough research and analysis to determine whether the company has a strong long-term outlook and the potential for growth.

    Another strategy for contrarian investing is to buy when the market is in a downturn or a bear market. During these periods, investors tend to be fearful and sell stocks, causing prices to drop. While this can be a risky time to invest, it can also be an opportunity to buy stocks at a discounted price. In a bear market, many good companies' stock prices will drop along with the overall market, this does not mean the company is any less valuable.It's important to keep in mind that contrarian investing is not without risk. Buying stocks that are out of favour with the market or during a downturn can be risky, and there's always the possibility that a company's fundamentals may not improve, and its stock price may never rebound. However, for investors who are willing to take a long-term view and do their due diligence, contrarian investing can be a rewarding strategy that can lead to above-average returns.

    In summary, contrarian investing is a strategy that can be successful for those who are willing to go against the crowd and look for opportunities in undervalued or out-of-favour companies. It's essential to conduct thorough research, have a long-term perspective, and a readiness to handle the risk involved.
 
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