I will say if anyone half planend ahead (not me sob sob) this is an incredible opportunity isn't it
Is that a rhetorical question Jill?
Most people will not know if it was an incredible opportunity until after the fact. The average individual investor or trader is literally taking their life in their hands if they are buying now just because things are cheaper, unless they have a long timeline, are buying stable companies, and are not on margin.
A simple technique that works well would be to buy if price makes a higher high and higher low than the down day before. At least price has proved to you that it wants to move up and you are not catching a falling knife.
Should price later reverse and move below the day you entered, you must sell...
Back to the rhetorical question, sure, good opportunities are being hatched now, but perhaps next day or next week things may be even cheaper, making today's opportunity look like a false bargin... ;)
Bottom line, for most people, in my opinion, it is better to let the market prove itself by going up than to attempt to buy the low or average down. The lost opportunity can be as little as one mere trading day, and in the grand scheme of things, that's not much to ask for, in return for additional security.
Regards
Michael |
