Best Advice In a Bull Market (Everybody's a Genius Again!)

"Hanging tough paid off. The stock reclaimed all that lost ground the next day (Point 3) and was up 40% within a month"

that was a great one bung. nice ;)
 
Quote from bungrider:

how about a thread to memorialize all of the new stock market geniuses that have recently materialized? if the selling comes in, it will be potentially more amusing in retro...

this gets my vote...could be summed up as "buy stocks that are going up"

http://biz.yahoo.com/ibd/030620/corner_1.html
More...

"when a stock clears this hurdle, it means virtually all uncommitted holders have been cut loose, leaving it free to climb unfettered..."

Nothing like an absolute to get people buying.

I can here it now...

Joe Investor to his wife, Jane Investor "but honey, it says so in the article - what could go wrong?"
 
Cant recall which year it was that the market staged a massive bear rally.(Not implying I was alive then). But I always love reading quotes from papers and then u will see at the footnote a date from 70 years ago. Just a strong reminder of how sentiment rarely changes and history often repeats itself
 
Yeah, it really is wierd, people never change, just change costumes thru time,bullshittiing ourselves that were evolving into something more than we are.
 
Banjo,

A good observation. A few (many?) years ago I was reading a biography on Bernard Baruch, the legendary investor. When he was young boy, they had what were commonly termed "panics" in the stock market. Anyway, after many of these panics, he noted that all of the "old guys" were seen walking to the brokers office the next day to buy stocks on the cheap. I think its a generational phenomenea. Those old guys had lived long enough to figure it out. Just today I was reading an article that talked about how the gen x-ers were avoiding the stock market in favor of safer investments like real estate. Probably because they lost money in the stock market or knew someone who did. They are clearly ignoring history.
 
Here's another history lesson for ya:

One of the first stages of a bull market is skepticism, then recognition, then enthusiasm, then distribution, then horror. The bears doubt, get trampled by the bull and in turn fuel the bull by their short covering. Speculation becomes rampant and people wait for the pullback that never happens, watching as the market goes higher and higher without them, instilling regret and vowing to themselves to buy the next pullback. Volume decreases on the rallies and the bears are finally all washed out. Tired of losing money, all the bears are converted at the top of the bull market and then watch in horror as the bull market turns into a bear market. They lost money on the way up and then on the way down. The johnny come lately longs lose out as the bull market descends without making new highs.

The slow die, be they bull or bear.
 
here's a good one from the fools.....

http://www.fool.com/FoolFAQ/FoolFAQ0048.htm

some of my favorite excerpts:

"....not to mention the lost earning power of a job plus what your capital might have made sitting in a mutual fund in the greatest bull market in history."

"...Few have the discipline to enter a stock before it is rising or when it is dropping, yet in many cases that is the only way to "buy low.""
 
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