Go anywhere and one sees the desperate call to BUY. Screaming from news channels,financial websites, every analyst around cries out: Here is a Dip!!Buy it, buy it now before the chance is lost, before all possible chances of getting at lower prices is lost forever. Go on Twitter, go on CNBC, Bloomberg, read any financial publication and there is this desperate cry exhorting you to buy the market NOW and on Dips.
Ask them how much of a Dip a Dip should be before you can possibly get into these markets, and you are faced with a blank look and a deep, pondering silence. A long, glum, gloomy Silence. Many of them would quote a Warren Buffett line of Buy Low, Sell High and then pray that you stop with your piercing questions. Do go easy on them though ,they really have no answer to these questions.
Markets go up, they go down.There is no madness when markets correct or enter into a downtrend. No madness at all when extreme price action to any one direction settles down to an opposite trend. But there is indeed a great madness in this great desperation of convincing everyone to buy under the guise of BUYING ON DIPS!!! And a greater madness, when that is exactly what you go on to do.
Think Shorts in a Downtrend. Think Longs in an Uptrend. Know the difference between the two, and the exact point where one becomes the other. A Downmove is a downmove is a downmove and there is only one action that needs to be done. Take shorts(in Futures Markets) or stay out if your country or market does not allow that. But trying to catch a falling knife, and you are going to get hurt.
Buying on Dips however intelligent the concept may sound ,or however aggressive that concept is sold, is nothing but a gamble.Get on the Right Side of the Market. Apply your strategies and become a Strategic Trader. Remember one important thing: If you want to be the greatest of gamblers, be one, but the greatest Gambler does not gamble. He plays as per a well planned out Strategy.Stay away from small time, amateur gambling. Stay away from following a financial and media setup that tells you of the dire need for you to do so .Instead.......Go with the Flow of the Markets!!
Ask them how much of a Dip a Dip should be before you can possibly get into these markets, and you are faced with a blank look and a deep, pondering silence. A long, glum, gloomy Silence. Many of them would quote a Warren Buffett line of Buy Low, Sell High and then pray that you stop with your piercing questions. Do go easy on them though ,they really have no answer to these questions.
Markets go up, they go down.There is no madness when markets correct or enter into a downtrend. No madness at all when extreme price action to any one direction settles down to an opposite trend. But there is indeed a great madness in this great desperation of convincing everyone to buy under the guise of BUYING ON DIPS!!! And a greater madness, when that is exactly what you go on to do.
Think Shorts in a Downtrend. Think Longs in an Uptrend. Know the difference between the two, and the exact point where one becomes the other. A Downmove is a downmove is a downmove and there is only one action that needs to be done. Take shorts(in Futures Markets) or stay out if your country or market does not allow that. But trying to catch a falling knife, and you are going to get hurt.
Buying on Dips however intelligent the concept may sound ,or however aggressive that concept is sold, is nothing but a gamble.Get on the Right Side of the Market. Apply your strategies and become a Strategic Trader. Remember one important thing: If you want to be the greatest of gamblers, be one, but the greatest Gambler does not gamble. He plays as per a well planned out Strategy.Stay away from small time, amateur gambling. Stay away from following a financial and media setup that tells you of the dire need for you to do so .Instead.......Go with the Flow of the Markets!!
No comments:
Post a Comment