I believe that you are correct. The goal for the individual trader is to recognize this and profit from it. As always, reverse what a beginning trader would do (I know what that is, lol) and trade just the opposite.
I read a trading book a few years ago that was a compilation of bios of other traders. The one that remains with me to this day said "What I do is just wait for money to lay around an go pick it up." By this, he means don't try to force a trade. Don't trade and hope. Wait until you see an opportunity arise and jump on it. Of course, in order to see an opportunity, you have to study and become observant. There are stocks that double and triple in value very day/week/year. You just have to be able to recognize the opportunities. For the market, in general, buy when everyone is selling, not when it has already gone up and looks like a good buy, because it probably isn't.