Chasing the bull
Going by the emails I am getting, I see lot of people have started to chase this move at this stage. Some who were on sideline are becoming cautiously optimist. Some were married to the bearish hypothesis and are regretting not getting in and missing. Some were following the wrong gurus( never follow a guru even if his name is Easyguru).
I see a high risk to those late to party. The best thing is to write down the lesson learned and remember it for next time. Buy strong trends( in individual stocks)when down trends in Indexes start losing momentum. Wait for the market to set up again. It will again offer low risk entry points. Nothing changes much in the market. Same thing repeats again and again. I have seen the same gap and trap move many times.
In fact you may want to keep your list of short candidates ready, in anticipation of the next likely move.
Now my this view or hunch on market does not prevent me from taking a long positions in stocks like EVST today.
I see a high risk to those late to party. The best thing is to write down the lesson learned and remember it for next time. Buy strong trends( in individual stocks)when down trends in Indexes start losing momentum. Wait for the market to set up again. It will again offer low risk entry points. Nothing changes much in the market. Same thing repeats again and again. I have seen the same gap and trap move many times.
In fact you may want to keep your list of short candidates ready, in anticipation of the next likely move.
Now my this view or hunch on market does not prevent me from taking a long positions in stocks like EVST today.
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3 comments:
EVST - very low float! Could be a wild ride!! Looks like some asset management has been buying up shares. Going private maybe?
GT
It requires good stomach linings to trade these kind of low float stocks but sometime they make good moves. Look at MWRK, GROW, INPH, NVEC, MFRI etc. All up 100% or more in a year. Sometime they will have 2-3 dollar fluctuation in a day. Plus the bid ask spread can be very wide. Not for eveyone.
I recently ordered and just received "Reminiscense of a Stock Operator". I can tell you I spent a lot of money for it and was expecting something like a "coffee table" book. Nope, just a regular hardback book with black type. Must be some good stuff inside so I anxious to dig in. I can't help but thinking it may have been a good idea to check the public library.
GT
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