πTrading is supposed to be about strategy but sometimes it feels more like a rescue mission. I must confess that I have a Bottom Fishing Addiction.
It is a seductive habit. You see a big name that has been absolutely pummelled - down 40%, 60% or even 80%. While the rest of the market is running away, I am stepping in, convinced that I have found the bargain of a lifetime.
How I am fixing my addiction:
I am learning to stop being a hero. My new rule: No base, no trade. I am forcing myself to wait for the stock to stop making new lows & actually trade sideways for a while - showing that the sellers are exhausted.
I am also waiting for the price to cross back above its 20 day moving average before I think of touching it. It is better to buy a stock at USD 55 that is actually moving up than a bargain at USD 50 that is still falling.
It takes humility to admit that a cheap stock can always get cheaper. I am still a work in progress.
@Tiger_SG @Tiger_comments @TigerStars
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments