We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Does "Buck the Trend" Mean?

By Osmand Vitez
Updated May 17, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

The finance or financial industry often has numerous terms to describe an individual or company’s actions. “Buck the trend” is one such term, which means an individual is outperforming a poor securities market or a company’s stock is doing better than the status quo. In most cases, the term applies when an overall market is in decline or a group of securities are in constant decline. An investor can buck the trend by finding stocks or companies doing well despite the prevailing cycle. Those who can make money in down markets are often valuable individuals who can provide information for other investors.

Technical analysis uses a stock’s chart history to define future movements in price. Investors use charts to buck the trend for individual stocks. For example, a stock’s price may be decreasing simply because the poor market is dragging the price down due to increased stock sales. Investors who pick up on a trend in the chart may go long in hopes of a future stock price rise; this is also known as being bullish. If the stock turns and begins to increase in price, the investor bucks the trend and will begin to make money once it begins its price increase as he or she bought the stock at a low price point.

Investors also buck the trend by applying this mentality to an entire industry. In most downturns, certain industries begin a downward price trend first. This can be the result of lower consumer purchases or contraction by these firms to shore up profits in poor economic times. An investor can remain bullish, however, by purchasing stocks at low price points because he or she knows these typically stable companies will come back strong after the downturn. Many different industries can be in this predicament based on the current economic conditions.

Another way to buck the trend is to use fundamental analysis when purchasing stocks in poor markets. Fundamental analysis looks at the company behind the stock rather than just at a stock’s price movements. Companies with strong clientele, good products, favorable cash positions, and solid infrastructure often weather poor economies. These companies tend to have stable earnings that allow the company’s stock to be popular among investors. Buying stocks from these companies usually results in successful investing and allows investors to buck the trend by looking for good companies rather than good stocks.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Link to Sources
Discussion Comments
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.