It's every investor's dream: To outsmart the rest of the investing herd by consistently buying low and selling high. Unfortunately, many an investor has learned that this is easier said than done.
The truth is that the market—that collection of countless investors trading in stocks, bonds, commodities and more—is more skilled as a whole than are its individual participants. And that fact provides a key insight into how to invest successfully.
The collective market is a vast realm where opposing players compete against one another daily to buy low and sell high. In doing so, they help to set fair prices for everything from stocks to real estate.