All you need to do is buy low, sell high at the right time. We all know that only 5% (mainly institutional investors) of investors make money, and the other 95% lose money. You need to keep in mind that the numbers of shares of stocks out there are fixed.
When 5% of investors hold majority stocks - bottom of market (safe to invest)
In this case, 95% of investors are panic and afraid to buy any stocks; however, the other 5% are buying aggressively, then we know the market has reach or near bottom.
When 95% of investors hold majority stocks - peak of market (should sell all your stocks or short)
In this case, the stock market has rose quite high and become hot topic. Moreover, all your friends are talking and buying stocks, and then we know 95% of investors hold majority stocks (the market has reach or near top).
In order to survive in the stock market, you need to find out who holds majority stocks, buy low and sell high, and follow the 5% winners, not the rest 95% losers.
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