Getting suckered into buying..

[NY_HOOD]

today is a great example. A huge down day and traders think stocks that closed green means they bottomed. I have seen this many times, it means nothing.
A stock goes up 2 points on a 900 point down day on no news gives traders a false sense of security. In reality it can go down 5 points on moday.

 

[murray t turtle]

today is a great example. A huge down day and traders think stocks that closed green means they bottomed. I have seen this many times, it means nothing.
A stock goes up 2 points on a 900 point down day on no news gives traders a false sense of security. In reality it can go down 5 points on moday.

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A good time to buy some + have some shorts/inverse ETFs. IF I knew it was going to finish down that strong-, I would have kept even more of my inverse ETFs. …………………………………………………………………………………………………………………………...

 

[nooby_mcnoob]

When you do this too often, you should stop

 

[KCalhoun]

I bought SQQQ VXX TVIX plus MGM PENN & oil, gold etfs small for weekend hold, mostly cash .. probably red Monday but could bounce... exciting times to trade

 

[ironchef]

When you do this too often, you should stopView attachment 222644

I guess you have not heard of averaged down, or doubled down. I just did.

 

[nooby_mcnoob]

I guess you have not heard of averaged down, or doubled down. I just did.

Oh I have heard about it, and it's a valid strategy if executed judiciously but I think under one of the following conditions:

1. You are using dollar-cost averaging (overall, this dip may not be but a blip)
2. You have deep, deep pockets and can keep buying for years
3. Your timing is impeccable and you are wrong only 5% of the time

I can't imagine it works in any other circumstance. Better to take a $50K loss than turn it into a $500K loss.

This idiot has been "forecasting" hopium trades for the last 3 weeks and just put the last of his money in last week:

https://twitter.com/TheProphetGod

Overall of course, a 30% decline is a great buying opportunity. But this could be a 1929-type circumstance. Too early to tell. I'd rather buy on the way up. The average will be the same, the drawdown will be less.

 

[ironchef]

Oh I have heard about it, and it's a valid strategy if executed judiciously but I think under one of the following conditions:

1. You are using dollar-cost averaging (overall, this dip may not be but a blip)
2. You have deep, deep pockets and can keep buying for years

I can't imagine it works in any other circumstance. Better to take a $50K loss than turn it into a $500K loss.

This idiot has been "forecasting" hopium trades for the last 3 weeks and just put the last of his money in last week:

https://twitter.com/TheProphetGod

View attachment 222666

Overall of course, a 30% decline is a great buying opportunity. But this could be a 1929-type circumstance. Too early to tell. I'd rather buy on the way up. The average will be the same, the drawdown will be less.

I have a bad habit: I like bargains. Can't pass up a "good deal" so usually bought on the way down.

I am actually serious. Mostly I regret it afterward, like GE, WFM, RAD, fortunately no BA or TSLA.

 

[nooby_mcnoob]

I have a bad habit: I like bargains. Can't pass up a "good deal" so usually bought on the way down.

I am actually serious. Mostly I regret it afterward, like GE, WFM, RAD, fortunately no BA or TSLA.

I was the same until I realized that the pain of drawdown is completely unnecessary for the most part. Also I am still the same, but I have to fight it.