"SIMPLICITY" seems to be the rule in INVESTING what do you think?

Someone told me that if you can't explain your reasoning to a 10 year old about why your buying a stock then you probably shouldn't buy it. IT SEEMS TRUE!!! The most simple logic for me as an example I bought dollar tree stores inc. when they were about 22 bucks a share about 2 months ago. Why? I thought they were too low and undervalued as their profits hadn't been shown to change and GUESS what I sold at 29 making a nice little profit of 7 bucks a share. It was a simple idea though that I could explain to a 10 year old. I also have been investing in things that do the INVERSE of the market because as we all know the general market is going down down. So I choose SKF, SRS, QID and for the most part they are doing well. Again I could have explained that too a 10 year old buy investments that inverse the market when the economy is bad. SIMPLE!! IT seems that way too when I buy stocks that have a narrow sideways price i.e. a FLAT LINE and then as they start to go up a little you buy and they usually continue. A "NARROW DIEWAYS PRICE CHANNEL" Again though this is simple the supply equals the demand for the stock so it's level and then when the demand gets higher it shoots up becasue the demand all of a sudden shot up simple right? OPINIONS???

When trading I'm a firm believer in KISS
keep it simple stupid

I bought USO at $83 a couple days ago because it broke resistance. It's now at $87.

I'm going to buy AEM right now because it's broke resistance.

Simplicity works

I am pretty simple, and my investments are in the toilet. So I guess not. :)

Making money in this choppy market is tough. you must be doing something right.When people are running for the exits is usually a good time to buy. Check out Consolidated Edison ticker ED. It is pretty much at it's bottom and they have raised their dividend 34 years in a row. It yield 5.7 % good luck

Just saying, "simplicity," is, to my mind, too simplistic.

You first of all need to have your principles straight.

In the late 1990s you could have told a 10 year old, "I'm buying this Internet stock because lots of people are getting on the Internet," and it would have been simple -- but wrong.

Heck, you can tell a 10 year old, "I'm buying this stock because I'm sure that in a month someone else will pay me more money for it," but the greater fool method is dangerous.

I think that if you do have the right principles, though, investing is simple -- though not necessarily easy.

I do agree that a lot of people over-complicate the process. If you're using charts, you've already over-complicated it.

"I'm buying McDonald's because a lot of people around the world like to eat hamburgers, and they will pay me money every 3 months." I like the sound of that.