Index funds. You can't beat the market consistently. Maybe you can get lucky for awhile, but if you're relying on that, might as well go to Vegas and have more fun at it.
They asked (I don't have the exact numbers at hand) 1000 people to answer the following question:
Do you think that you are better informed about the companies that stocks you hold than the average stock holder who also invests in the same company.
In a rational/non-chaotic market about 50% would say "yes" and 50% would say "no". If I remember correctly 90% said "yes" and only 10% said "no". When you buy stocks you should be aware of that because I think its very important to know...
Seriously though, of course the average investor cannot beat the market, it doesn't mean it isn't possible for an individual to do so, or that it is all down to chance.
One approach is to focus on small companies.
Most active funds will not invest here (it is not worth the time when they would only be able to invest a tiny fraction of their funds).
As such these companies tend to be under-researched (not necessarily the same as under-valued though), so if you're willing to put in some leg-work and a lot of patience, there can be some good opportunities.
No, it is all down to chance.