there are a million ways to make money in the market. .
same number to lose money. .
Since there is a constant upwards bias, buying after a dip of 30% has very low risk, not zero, just very low.
Why? because the more stocks drop the more they approach a large discount to fair value. . ie, they are under valued. . and who doesn't like a stock market sale. .
Selling at the top is much more difficult, due to the upward bias, cult behavior, momentum following, trend following and known ATHs beget ATHs. . serial correlation. . like selling a house just after the top, your price never seems to get bid. . someone always wanting to buy undervalued with a low ball bid. . instead of just you taking the best bid just below your offering price.
don't get greedy and stubborn for your biased price.
good luck to us
|