Tuesday, September 9, 2008

The Words "Artificial Boost" Comes To Mind.

8 comments:

MatchPointTrader said...

In as much as I agree with the subject, I still think this is a good buying opportunity for long term investors. There are so many good companies at a cheap price right now! Then again, I have never traded in a bear market earlier so it might be just me!

Blue said...

What's long term, 1yr.? Anything longer and you stand to lose 80-90% of your money, says Bo Yoder. I have experienced just that so I tend to agree with him. Look at China from First to Worst last year to this year.

Anonymous said...

Stewie,

How's your trading going? Back in the groove yet??

Check out SRS again (long).

Good luck...

Stewie said...

anon. my trading has been pretty good. i trade a whole lot less now.I raped my account in August and it was due to over trading. I have been in Day Trade mode and sticking to my game plan and letting new ideas muddle my plan. I am usually done trading at around 10:30 eastern time. come back at the close to see what has happened.

Anonymous said...

hey matchpoint, the opportunity will be even better when those stocks will be even cheaper. this is the worst economic picture in decades.

MatchPointTrader said...

Hey BD,
I was thinking more along the lines of 6 month to 1 year. I understand the bear market p\e ratios are supposed to be single digit. But, there are companies that have strong earnings potential and their p\e s will become less than 6 even if they meet(or miss narrowly) the expectations. Also, There are many companies with really low market cap compared to their revenue(vlo, tso).I understand market works on earnings and other factors(gas price in case of refiners etc). But, still ! Now, I might be hoping more than I should be here. And this will be another lesson learned. Since everyone seems to be selling in this market(and I know one should follow the trend but), I am just curious if these are good buying opportunities even if there is more downside.

Anon,
Thanks much. Yes, I am also with you that stocks will be cheaper more. My thinking is - are the stock cheap enough to buy already?
>>this is the worst economic picture in decades.

Also, is current crisis worse than dot-com boom? I know I need to study more - I am going to look into earlier insightful posts of stewie and bd. I guess, I need to analyse china\india market and dot-com\post dot-com charts to see if I can see some pattern.

Anonymous said...

matchpoint. just my opinion, i commend you on thinking rationally. but you are dealing with somthing that will never be rational.stocks are driven by human emotion which will never be rational. today with all the news and information in my opinion will create more erational behavior. best to learn to read the charts and try to get a handle on which way the madness is going and go with the flow. if you buy and hold now ,let us know how yo make out.

MatchPointTrader said...

Sure Anonymous! Thanks for the advice. I am currently locking onto any profits I can but I am definitely going to hold on to a couple of positions. I will update on that later on.

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