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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tradelite who wrote (22161)	7/13/2004 4:32:44 PM
From: GraceZ	Respond to of 306849

Basically it's the opposite of the way most people deal with their investments. They tend to sell things that have gone up to lock in the gains and double up on those investments which have lost (to improve their cost basis). Peter Lynch called this pulling up the flowers and watering the weeds.

To: Tradelite who wrote (22161)	7/13/2004 4:34:41 PM
From: zebra4o1	Read Replies (1) \| Respond to of 306849

"buying into strength and selling into weakness" If you're buying based on some kind of analysis of fundamentals, you want more if it gets cheaper. Stocks are the only things that people seem to want less of when they get cheaper. I commit the venal sin of 'averaging down' quite a bit - seems to work O.K. for me. When I chase a stock up, I usually get burned. It's always shocking to me to see how different other people's trading styles are. Got to be something to do with one's personality type or something.