| First, I have no idea if we will have a recovery or when...I have said numerous times it could be a loooooooong time before we see any suatainable recovery and we may never in my lifetime ( I am 38 ) see the old highs on Naz.....as far as why I am buying the dips...although past history is no gurantee any trend will remain intact....the equity markets have been down and come back many times....I will be the first to admitt that we are in a different day and age, and things could be very different this time...we may never see recovery and it could be financial ruin for alot of people.....as for why I would buy at 1000 and continue to buy - if you dont believe we are going to zero, and if you believe that eventually we will have some form of recovery from some level, whether it be a 100% pop on naz right now to 2600 - 2800 or whether we drop to 500 and then double to 1000.....then the bottom line is every dip is getting us that much closer to a bottom......lots of scared folks...but also alot of funds sitting on cash waiting to spend....if naz was to get ripped to 1000, I think we would see both a slew of sellers throwing in the towel, as well as buyers that have been sitting on cash waiting for very low prices......then at that point, we go up or down....if up, good for us longs....if down, there will still be plenty of people willing to buy if naz gets whcked down to 500...maybe they, and myself are stupid...but the lower we go, the more comfortable I feel buying......as for how I am able to buy....my financial situation is nobodies business but my own....I will admitt the last 3 years have been horrifying...but my strategy lately has been to buy the dips, but dont buy all the shares you want....buy in 1/3's or 1/4's, wich allows me to average down and keep my cost basis fairly decent...... Example - original cost basis on EXTR = $14, bought more at $9 and more in the $7's....average cost is about 9ish.....if it hits $4 or $5, I will buy more and bring cost basis down to $5 or $6 level...and I will do this with several of my favorite stocks.......am I an idiot.....most people think it is stupid to be buying stocks, while the minority thinks eventually we recover and will buy the dips....I can't see into the future, so I dont know how all this turns out.....It could mean financial ruin for me, or I could get lucky and see a recovery, while I have a basketful of decent stocks at very low prices.......just one persons strategy, and everybody has to do whats best for them...... |
