In the financial crisis, many people avoided the first wave of plummeting and even experienced brief wealth spikes.
But ultimately, those who once wielded power in the market often met ill-fated ends.
Examining the countless cases that make up the bloody history of the stock market, one will find that the collapse of many leveraged investors did not often occur during the first wave of decline but mostly during the subsequent sustained downturns in the oscillating market.
The cause of death was bottom fishing.
Experts often perish from bottom fishing, just like the finest sailors often die at sea.
Entering the market when stock valuations are relatively low is commonly known as bottom fishing.
In essence, it's the simplest form of buying stocks, a basic operation that anyone with a stock account can perform.
However, the magic power of bottom fishing is far greater than shorting, especially when it's leveraged bottom fishing.
