China Natural Gas (OTC:CHNG) goes down with the stock market. This morning is trading around $10.10. I am not surprised given the run up before NASDAQ listing and the market condition. It appears to me that some investors are taking profit in light of the market down turn. What should we do? I am buying more today. The drop in price has nothing to do with the company fundamental. So, I decide to accumulate more shares at about $10. What if the stock keep going down? I will even buy more. This is a long-term investment holding, and every significant drop in prices is a good opportunity to buy more. This is exactly what I am doing.
Again, in this volatile market environment and even possible testing the market low of 666 in S&P 500, we may see stocks go down even further. But use the drop as a buying opportunity. As I always suggested, buy one-third of your planned investment, and buy another one-third during the dip and so on. By the way, you should do the same when the stock is going up and you are taking profit. Bottom line: get in and out gradually.