Why do folks only get behind stocks after they have made big runs?

[Maverick74]

Dude, people on this site trade, not invest. Hence the name of the site. People buy ABC at price X because in the future it's going to be X + Y. Y being some amount of appreciation. As Paul Tudor Jones once said, I don't buy low, sell high. I buy high and sell higher.

As far as LVS goes, there are 10,000 stocks that all "look" like they are going to break and run. Only a handful actually will. When they do break and run.....they RUN!!!!!!! There is no price to high to buy them.

 

[tiddlywinks]

When you *think* it's a good place to be, 50-50 you are wrong.
When you *know* it's a good place to be, 50-50 you are too late.

 

[chartman]

Quote from retaildaytrader:

Why do folks like to get behind a stock only after a big run? Why not come out before the break out to say that you feel it will break out?

The majority of investors buy high and sell low. The professionals knows this as they sell high and buy low. The pros will 'load up' at bottom prices and unload at the top plus sell short for the coming drop in prices.

The question should be: Why do people only in the stock market wants to buy high hoping to sell higher and rush to sell when prices drops a few points? Acccording to economic theory an increase in price is suppose to decrease demand and a decrease in price should increase demand. This is just the opposite in the stock market. Watch the volume/price action of a stock. When volume has increased a large percentage above normal for several days after a major price run with no major news or events affecting the stock, it is time to do as the professionals and reverse your position.

As an old trader with many years of experience told me about forty years ago and it still holds true; sell when the sun is the brightest and buy when the clouds are the darkest. Of course this applies to quality stocks and not speculative stocks. They are always only a gamble with the possibility of sponsors withdrawing without notice.

 

[NoDoji]

Quote from chartman:

The majority of investors buy high and sell low. The professionals knows this as they sell high and buy low. The pros will 'load up' at bottom prices and unload at the top plus sell short for the coming drop in prices.

The professionals buy all the way up, right up to that last tick, and sell all the way down, right down to that last tick. The professionals buy low and sell high, sell high and buy low, buy high and sell higher, sell low and buy lower. Professionals make money and lose money.

Please show the stats proving that the majority of investors buy high and sell low.

 

[OddTrader]

http://en.wikipedia.org/wiki/The_Motley_Fool

Q
The Motley Fool Stock Advisor

In April 2002, the company launched the first of its premium subscription services. David and Tom Gardner pick one stock each month in a brotherly competition to best each other and the S&P 500.

According to Mark Hulbert of The Hulbert Financial Digest, for the past five years the brothers have earned an average return of 22%, annualized, versus a comparable return of 7% for the Wilshire 5000.[7]

As of November 2007, the brothers had picked a combined total of 134 stocks, 34 of which had doubled or better. They maintain a consistent buy-and-hold style, tending to let their winning stocks compound returns over longer periods of time.

Their three best selections have been Quality Systems, GameStop, and Marvel Entertainment, all of which have at least sextupled.

UQ

 

[zdreg]

Quote from lurefo:

Obviously the guy who posted the original call is a trend follower and not a "break out" trader. That might not be your style of trading - not mine either - but it can still work.

So I'm not sure why you had to act like an asshole and create a thread out of it.

he asked a decent question. check your mirror.

 

[lurefo]

Quote from zdreg:

he asked a decent question. check your mirror.

No, he didn't just ask a question. Go back to the original thread before posting bs. Here's the fact: he jumped on someone who expressed an opinion with the obvious intention of :

1) belittle the OP
2) appear as someone who's in the know - IOW satisfy his own ego.

Enough said.

 

[chartman]

Quote from NoDoji:

The professionals buy all the way up, right up to that last tick, and sell all the way down, right down to that last tick. The professionals buy low and sell high, sell high and buy low, buy high and sell higher, sell low and buy lower. Professionals make money and lose money.

One must realize that professionals have two accounts. Their trading account and their investment account. They are constantly buying and selling in their trading account but they buy/sell and hold in their investment account until prices are reversed at the top/bottom on large volume blow-outs. They are doing their 'market making' in their trading account but investing for the bigger move in their investment account. The principal determinant in their investment account is the IRS code. Check stock prices at 13-15 months from their lows for long term capital gains. The professionals knows that to unload inventory in their investment account the stock prices have to increase which causes the public to rush in with larger buy orders and to accumulate an inventory they just need the stock prices to go down causing larger sell orders. Manipulation at the right time with the same constant results from the public is the key to profitability. The public always comes running with saliva dripping off their chins when the bell is rung. It never fails.

 

[retaildaytrader]

If thats how you feel, then go with it. I posted this because its obvious in this forum, on blogs and other such publications. The fact is that most of the time guys point out stocks that are near the top...

I dont have any "ego to satisfy" in this forum and Im not belittleing anyone. Just pointing out what seems to be the obvious.

Quote from lurefo:

No, he didn't just ask a question. Go back to the original thread before posting bs. Here's the fact: he jumped on someone who expressed an opinion with the obvious intention of :

1) belittle the OP
2) appear as someone who's in the know - IOW satisfy his own ego.

Enough said.

 

[KINGOFSHORTS]

The lemmings always sell low and buy high on TV/Radio hype.

The lemmings did it with dotcoms
The lemmings did it with electronics (later 1960s)
The lemmings did it with gold/silver (79-81)
The lemmings did it with property (housing bubble)
The lemmings do it with bonds going long when yields are down.


The lemmings (Typical american soccer mom,joe sixpack etc..)

They always get led to slaughter by the TV and Radio pundits and keep coming back for more.