I strongly feel that if you do your research and see something that you feel is vastly undervalued you should step up to the plate and buy. Why play games trying to time your entry point in the short-term. I have always thought guessing the next move of a stock over any short time frame is a loser's game. My opinion is that it is just a waste of time and energy and it creates a lot of stress. I have been reading this thread for some time now and once in awhile I post. I have noticed that over the last few months there have been more investors starting to post more frequently (this is good). Investors don't worry about the short term market/stock direction and worry about whether the intermediate/long-term fundamentals they bought into are still in tact. If they conclude it is, they continue to buy on dips. It seems that some of the more short-term oriented traders (and if some of you say you are not traders, some of you sure sound like it to me) are having a problem with this. If you can read the market good enough to judge the timing of your purchases, more power to you; but no one should question another person's decision to ignore the short-term market psychology to increase or establish new long-term, core holdings in this sector.
If people have the capital and the conviction, why not keep averaging down. In the end, you will do better than most others, as long as your research and conclusions were correct. The key is your fundamental research. As long as it's correct, your day in the sun will come.
Call me naive, ignorant, or just stupid, but, I don't think there are very many good traders/market timers. But, there are a lot of good investors.
For the record, I have been averaging down since spring and I feel I am going to get some great returns over the next five years. Sure I would have done better by waiting until July (or who knows, maybe fall) to buy in, but I don't think anyone has the type of skill and execution to consistently make these types of short-term calls consistently enough over time to win. If you do, let me know how to do it and we will start our own mutual fund and make millions of dollars.
FWIW,
Elmer |
