|
Stock buys are made in the immediate term. The
immediate term is encased within specific psychologies that are
often different from the psychology that will cause stocks to rise. |
| Therefore, buy a stock when the psychology has turned positive.
That is, when the stock is on the rise. Bottom-fishing is a losing
proposition. |
| For example, GM today, July, 2008, is still a short... especially over 10. I
would rather wait and buy it when I perceive a changed psychology
and when it is around 16... or somewhere below 5
depending upon macro circumstances. |
|
When a stock is rising, opinion is shifting toward
buying. Other investors of various sorts are of a positive opinion. |
|
I do not need -- nor does my ego need -- to buy at the bottom. I do
need to make money. |