To: kidl who wrote (37094 ) 6/22/2015 1:31:39 PM From: forbrydelsen 2 RecommendationsRecommended By Manucastle Ploni
Respond to of 49402 Sorry, I may not have been very clear. All I'm trying to say is that in my experience, stocks almost always have the most negative indicators right when they are at the precisely best time to be buying and vice versa. People that try to follow these indicators often sell right at the lows and end up buying right at the top. These technical basically indicate what the 'herd' is doing and right now the herd is dumping small cap stocks left and right. Now, I'm assuming the businesses in question are still sound when making this statement. It obviously doesn't apply if a company is on the way to bankruptcy, then ignore everything I've said. Anyway, I was just trying to make a distinction between trading and investing. Investors want to buy value. Traders want to buy volatility. (generalizing here of course) People will make and lose money in all sorts of ways but certainly the 'fear factor' is one of the most common ways to scare people into selling when they see all red all over the technicals of a stock they own. e.g. IBH.V right now in that link that was posted on here the other day. All that tells me is that the stock is very oversold and if I had to buy or sell here, I think there is less risk in buying at this point, after the big slide, rather than following the technicals which indicate one should be selling right here. Depends on one's timeframe as well of course. If you are betting on the next 2 hours or 2 days, then that's one thing but if you are investing in a business and are willing to give the company several quarters or even several years to build itself, then that's quite a different story. good luck!