When the blood was on the street and the Nasdaq was down 50, Iomega was trading below 20, Seagate was trading below 37, Cisco was trading below 47, this was the time to buy. On the other hand, for those stocks like Syquest that you may have shorted at 10 or more, you may have wanted to close your position when the price hit below 6. In essence, you buy when the blood flows fastest in the streets.
IMHO: You would have been especially comfortable with this strategy if you know your technology sector and were confident that INTC could beat or meet street estimates. If you were comfortable anticipating INTC's earnings report and you were trying to play it safe, then you don't have very much belief in the stocks you wish to purchase or short, etc. If you don't believe, then you shouldn't be investing. Those that don't believe have a tendency to bail out of the market and cut losses. If you cut losses too often, you'll never make any money. For most of the people on this forum, and I'm sure you're no different, their in for the long term. If you're investing for the long term, you buy on dips and buy more on more dips. It helps if you believe in the company your investing in.
By the time good news is on the street, opening bell usually means other's have beat you to the punch. You suddenly become a momentum player, purchasing the stock at a higher price, trying to ride it to the peak. |
