When the stock market starts going up, most people are, initially, scared to step aboard. It's not until stocks have gone up a long way for a long time that most stock investors become interested and start buying. On the other hand, when stocks start dropping, most investors are not afraid. Their courage has been bolstered by the steadily rising tide. Only because the stock market has risen a long way, investors believe it will keep going up. It is almost a gold-rush mentality.

Contrarian Investors buy on bad news, and sell on good news. "Buy low, sell high" is a well-worn cliche when trading stocks? But it's well-worn for a good reason:

That's how a stock investor must think in order to make money in the stock market.