How to Know a Bottom When You Don't See One [View article]
ArkansasAngie has it right!
Attempting to pick an exact 'bottom' is about the most dangerous pastime a trader can engage in! Market bottoms are NOT a singular event! Market bottoming is a process whereby deeply wounded markets are healed through price and time!
Thus we see again and again and again those 'double-bottoms' and 'triple-bottoms' over and over and over again; each false alarm bringing with it the specter of greater and greater 'whipsaw degradation' of portfolios as short-term profits are taken and trailing-stops are filled.
Forget about calling bottoms! Look for those higher highs and higher lows on increasing volume and improved fundamentals and we'll all do just fine!
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ArkansasAngie has it right!
Mar 11 13:35 pm
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All Comments by Jim Hawthorne »How to Know a Bottom When You Don't See One [View article]
Attempting to pick an exact 'bottom' is about the most dangerous pastime a trader can engage in! Market bottoms are NOT a singular event! Market bottoming is a process whereby deeply wounded markets are healed through price and time!
Thus we see again and again and again those 'double-bottoms' and 'triple-bottoms' over and over and over again; each false alarm bringing with it the specter of greater and greater 'whipsaw degradation' of portfolios as short-term profits are taken and trailing-stops are filled.
Forget about calling bottoms! Look for those higher highs and higher lows on increasing volume and improved fundamentals and we'll all do just fine!