Stock buys are made in the immediate term. The immediate term is encased
within specific psychologies that are often different from the
psychology that will cause stocks to rise.
Therefore, buy a stock when the psychology has turned positive. That
is, when the stock is on the rise. Bottom-fishing is a losing
proposition.
For example, GM is still a short... especially over 11. I would rather
wait and buy it when I perceive a changed psychology and when it is
around 16... or even 23.
When a stock is rising, opinion is shifting toward
buying. Other investors of various sorts are of a positive opinion.
I do not need -- nor does my ego need -- to buy
at the bottom. I do need to make money.
Paul M., MA |