EP,
I ask these questions with the utmost of respect.
Does it really matter why prices drop? Does the reason for a drop in prices make it any easier to withstand the loss?
I bailed on DVN at $49 in the face of what most people were calling strong fundamentals. The technical indicators told me it was time to sell. We were facing huge draws, and as those draws came, the share prices kept going down. As the record cold weather has hit, those share prices kept going down.
War premium, prices heading down. The need for more drilling, prices heading down. Economic conditions improving, prices headed down. Increased demand for NG, prices headed down. High commodity pricing, prices headed down.
If these things can't push prices higher, what's it going to take for the buyers to show up? And in the face of all these positive fundamental conditions, and the share prices still dropping, why wouldn't one protect their profits as opposed to fighting for the same ground twice?
If someone, not you specifically, has to get a 50% rise to net a 20% profit, are we to consider that a good trade? I notice quite a few people stating they might be early but they expect things to work out. If one suspects they are early, why make the trade at all? Why not wait? Are we to fear missing a rally more than we fear capital losses?
EP, most these questions aren't directed at you. I merely took advantage of my response to you, to ask these questions to all that come here.
dabum |
