” I've stop letting my losers turn into whales”
Always a very wise approach, IMO.
” My nature is to try to pick bottoms but I know that is a very difficult process. That's why the reversal watch is very helpful”
Yes, I’d say that getting in at the start of an appreciable uptrend will always be a goal of many investors (or should that, sometimes, be speculators? {:-)).
A consideration, in that regard, may be to consider what is “fueling” a price movement.
Is it a company news item, or an Analyst’s comment(s), or a rumour of sorts, or the downtrend in a company’s sector over which the company, itself, has little control, or is it a mismatch between relevant financial fundamentals and price?
We recently had an exchange regarding JOY. One can see that the company is well run and potentially profitable. Unfortunately, at the present time, things are “quiet” in its sector, so the financials are static and one would like to think that this has “fueled” the recent decline in its price.
However, I’m pretty certain that once things pick up again in the mineral extraction business, and this starts to reflect in JOY’s financials, then its share price will move up accordingly.
In such an instance a move upwards from JOY’s price bottom would be a good time to “get on board” as the potential price uptrend would be “fueled” by a sound reason and would certainly be based on “strength” as opposed to a possible “Mr.Market” mismatch.
Notwithstanding anything to the contrary, I’m certain that you would always be “making steady progress” and adding, considerably, to your investment cash pile! |
