"Smart Money" are the ones buying off you at Bottoms and selling to you at Tops. That makes you the "Dumb Money".
follow the smart money and/or do the reverse of unsmart / foolish money. Alternatively BUY when UPTREND SELL when DOWNTREND DO NOTHING when NOTREND
Wait a minute! They told me to buy low and sell high. And here you are, telling us the exact opposite!
amended to make it clear: Alternatively BUY low sell high when UPTREND SELL high buys low when DOWNTREND DO NOTHING when NOTREND
I've read some good books about trading & investing. What Works On Wall Street (JP O'Shaughnessy 1996) is probably one of the most exhaustive books about factor investing. The conclusion was microcaps are the best buys but their market cap limits how much you can buy. The realistic buys were relative value+momentum. The worst strategy was buying high P/E stocks with no earnings. MTUM & ARKK are good examples of the last 2 trends described. ARKK is what happens to portfolios when all you buy is trading stocks aka stocks with a P/E of negative infinity. Shorting Stocks In Any Market. It's mainly about shorting stocks after they violate it's previous support based on weeklies not dailies. It works pretty well even today. It would have gotten you into UNH as a short. Lilly & Novo Nordisk also were good candidates shorting below the weekly support. Novo still hasn't come back.