Wednesday, January 17, 2007
Are ENT & PDS Headed Higher?
So it appears that ENT and PDS have both reached a 52-week price bottom lately and are headed higher.
This blog is at least two days late. You can find the original post at StockCounsel.Com
There are inherent advantages to buying at major lows and on the way up. Not only is the downside risk a lot smaller, but the upside potential is also much larger.
OK, I admit I don't usually buy high to sell higher. I don't deny that the greater fool theory that trend-followers use works the majority of the time. But occasionally, when prices get too high, greater-fool theorists and trend-followers may end up fooling ourselves, especially at major price turning points. That can hurt, even badly. Being on the wrong side of the market at major price turning points is not an attractive proposition, financially and emotionally speaking.
So, there is merit to buying low and sell high. The contrarian strategy does work, although it may require more, often a lot more, patience and the ability to go against the majority and prevailing public opinion ane emotion.
This blog is at least two days late. You can find the original post at StockCounsel.Com
There are inherent advantages to buying at major lows and on the way up. Not only is the downside risk a lot smaller, but the upside potential is also much larger.
OK, I admit I don't usually buy high to sell higher. I don't deny that the greater fool theory that trend-followers use works the majority of the time. But occasionally, when prices get too high, greater-fool theorists and trend-followers may end up fooling ourselves, especially at major price turning points. That can hurt, even badly. Being on the wrong side of the market at major price turning points is not an attractive proposition, financially and emotionally speaking.
So, there is merit to buying low and sell high. The contrarian strategy does work, although it may require more, often a lot more, patience and the ability to go against the majority and prevailing public opinion ane emotion.
