Replies to post #82456 on Blue Diamond Ventures Inc (BLDV)

[Kool Aid Man]

Obviously it's "possible" to make money flipping on small swings. However, it's not "probable" that anyone has a fool proof crystal ball or is skilled enough to always buy low and sell high. If they did they could rule the world in very short order.

IMO those who relentlessly claim that a stock is always about to break higher is rarely doing so in order to help their fellow man get wealthy. Rather it's more likely they're hoping to unload their own shares onto a "greater fool."

In finance and economics, the greater fool theory states that the price of an object is determined not by its intrinsic value, but rather by irrational beliefs and expectations of market participants. A price can be justified by a rational buyer under the belief that another party is willing to pay an even higher price. In other words, one may pay a price that seems "foolishly" high because one may rationally have the expectation that the item can be resold to a "greater fool" later.

In the stock market, the greater fool theory applies when many investors make a questionable investment, with the assumption that they will be able to sell it later to "a greater fool". In other words, they buy something not because they believe that it is worth the price, but rather because they believe that they will be able to sell it to someone else at an even higher price. It is also called survivor investing. It is similar in concept to the Keynesian beauty contest principle of stock investing. https://en.wikipedia.org/wiki/Greater_fool_theory