How to identify the bottom?

anubis · 1 How to identify the bottom? Wed Jun 22, 2011 4:29 pm

anubis

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Dear experts,

I have some money (not much) that I would like to use and buy some more of NTB, RICH and DFCC. I already own some of these shares and I'm currently experiencing a total loss of about 30K, however I'm not concerned because I'm a long term investor (very small scale though).

The problem is I have a hard time deciding when to buy more shares... I mean it seems the share price is declining at a constant rate which sort of suggests we're not at the bottom yet. According to http://en.wikipedia.org/wiki/Market_trend#Market_bottom it seems one way to identify the bottom (or rather a good time to buy) is when investor sentiment is very low. In this regard this forum provides a good idea about investor sentiment IMO Wink

right now even though we can see a couple of experts commenting that we're in a bear market, most of the investors are still in an undecided state, does this suggest I should wait a bit more? Exclamation

What do you think?

Thanks.

gann · 2 Re: How to identify the bottom? Wed Jun 22, 2011 6:14 pm

gann

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There is no way one can identify the bottom of a stock price. Same applies to top. If one does enter its by accident. Finding the bottom of a stock price is the ultimate trophy cause you will be in a winning trend for a quite a long time.

m2_yapa · 3 Re: How to identify the bottom? Wed Jun 22, 2011 7:26 pm

m2_yapa

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Better to have your own strategy...without following crowds....study..do home works and buy...time to time there are several factors affecting to CSE....you can predict it...to investing in CSE and Winning through same is not one case...it is tottaly different thing...some investors enter from IPO some are from bottom..some are from middle...many are from the TOP...they are the people who do not have much experience in the CSE.. and dump their money...even some foreign buyer are entering when share trading at TOP...but they have several type of intentions to enter the CSE on that time period...
Now a days lot of discussion are going on EU along with Japan co-laps...
When you know the top then only you can realize when share come down...
Better option is to invest in totally different groups or in several companies...there are companies who has potential growth in coming quarters and year...if you are a long term investor just identify the sectors and companies...you have enough time...do not hurry to buy any stock..CSE is not closing tomorrow...Read news papers...have some sort of political updates and if possible some link with them..same time you must have good general knowledge and sense...
Then you will be a winner in future....
Good luck

Pichchiya · 4 Re: How to identify the bottom? Wed Jun 22, 2011 7:46 pm

Pichchiya

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Just touch

insidertrader · 5 Re: How to identify the bottom? Wed Jun 22, 2011 8:09 pm

insidertrader

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You can't say that was the bottom even when the share price goes up from tomorrow onwards. I bought a blue chip stock last December never thinking it would go to that price again. But several months ago it did go near that and I was lucky to buy it at the very bottom at that time again. But now it had gone 5% lower than that value. There's always new bottoms in the next weeks, months and quarters..