The table shows 1 month stock prices of selected issues from 24 November to 23 December 2010. I have bought some of these stocks during their uptrend and have some nice profit. Normally if you buy sideways, it means you are betting it will go up anytime soon, That is HOPING. It is dangerous to hope. Because you are telling the market what to do. You have no control over that.
If you catch tops and bottom, possible to earn, but how would you know it is the top or the bottom.
So, it is very familiar to hear from a trader story, " I have bought that at one peso and held it for a year without any paper profit, when I get tired of waiting, I sold, then it suddenly shoot up"
Sounds Familiar?
" Many traders are puzzled why markets always seem to reverse immediately
after they dump their losing position. This happens because crowd
members are gripped by the same fear-and everybody dumps at the same
time. Once the fit of selling has ended, the market has nowhere to go but up.
Optimism returns to the marketplace, and the crowd feels greedy and goes
on a new buying binge. . A. Elder` " 
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