Buy this dip, or get the hell out?

[McLovin]

My friend in finance always told me, once news of the trend gets into the mainstream, then you're too late.

The last bull market went for twenty years, I'm sure it was in the mainstream media well before 1999.

 

[princeplanet]

sorry I should have been a bit more clear... no I cant predict the stock market or price movement
but I am never nervous regardless of what is happening in the market unless I'm gambling and have absolutely no idea what going on in the business I hold.

you should not be nervous if your objective is clear and you confortable with your risk management
... this is what I do ...

I have spare cash every month, I cant spent more than I make...well I could but I decided not to...
with that surplus I go and look for reasonable business that pay dividend with sound balance sheet.

I then buy them at a price I am willing hold for many years regardless of what happening in
the market...sometimes I buy some stocks and it went down and I think the business is in great shape..

I buy some more and vice versa ...stock can go up and I still buy more.....

Until the fundamental of the business change for the worse or I think the price doesn't justify valuation I then sell
so no need to get nervous ....I trade my surplus cash for solid business that pay dividend..Right now I have no use for those dividend so I reinvest back into the market for compounding return...one day this dividend will support my retirement but until then it stays in the market....

hope that help you so you dont get nervous...

That certainly sounds like a sound strategy. So true valuation is tantamount, I suppose at some point (and it may only be one point) the SP hits it true valuation. If you always buy cheap, and sell at valuation or better you can't lose I suppose, particularly if the dividend is good and you've held it for a while. But what If I have already bought stocks over their true value? Let's face it anyone who has bought banks in the last 6 months can't escape feeling nervous. But yeah, point taken, If I'd never bought overvalued stocks, then I need never feel nervous, just patient....

 

[Tyler Durden]

Tyler can I ask have you ever got onto any significant trend before?

I bought in the previous dip, so got on way before this current bull. Not saying it was skill, but my plan was just to buy low.

 

[Smurf1976]

If Coles / Woolies drops the price of most items in the store by 10, 20 or whatever % then as a customer I don't see any reason to complain. It's still the same bananas, cereal, apples, cat food or whatever it's just being sold at a lower price.

If the market drops the price of businesses I want to buy into by 10, 20 or whatever % then I don't see any reason to complain. It's still the same mining, banking, retail or whatever business it's just being sold at a lower price.

Suffice to say there are many stocks I'd buy, but not at their current prices. If the price drops, and nothing has changed with the underlying business, then I'll be in.

 

[sydboy007]

I've only been recently investing in the market, was able to ride the wave of buying since November.

Some of my portfolio is up over 25%, a couple of other stocks up over 15%.

Been thinking should I take the profit and sit out for a few months and see what happens with the month of May and the USA debt ceiling pantomime.

But where do I put the cash? Interest rates are pathetically low, though at least provide a real return unlike a fair chunk of the world.

Most of my listed investments are providing 7%+ with the franking credits, and around half is over 8% yield.

The question is will I make a better return by turning over the portfolio more often to try and time the market, or will I be better off just focusing on the business and how the profit growth is going and hold on while the numbers add up for me?

 

[princeplanet]

Anyone buying into this new dip? Something tells me I should, but too chicken to pull the trigger. When will I learn?.....

 

[stewiejp]

I am - but my strategy could be different to yours.

 

[Country Lad]

Anyone buying into this new dip? Something tells me I should, but too chicken to pull the trigger. When will I learn?.....

Yes, there are opportunities whatever the market is doing, up, down, sideways, it doesn't matter, it is a matter of picking the right stocks. Needs more work in an unsettled market, that's the only difference.

This has been a stock picking market for some months with not all the boats rising with the tide.

Cheers
Country Lad

 

[tinhat]

Recently I have bought SLR, MML, MNF and am looking closely at MTU. There are some opportunities out there. I hope I picked the right ones SLR has not gone my way.

 

[qldfrog]

Recently I have bought SLR, MML, MNF and am looking closely at MTU. There are some opportunities out there. I hope I picked the right ones SLR has not gone my way.

today was better, bought a bit too early too
wait and see

 

[tinhat]

Oh dear! Not a good day for the gold stocks. High risk entries have not gone my way.

People are buying the dip though. Good quality, especially small caps, are getting bought up today. Just looking at my watch list, HSN up 6%. SIP, SRX, MTU, MNF, IIN TPM, RCG, NXT all up.

 

[drsmith]

Any insights as to why resources have taken a pounding over the past several weeks ?

 

[CanOz]

Any insights as to why resources have taken a pounding over the past several weeks ?

Copper, Silver, Gold, Platinum, and now oil have been slammed...US Dollar has gone from 79.11 in February to 82.86 yesterday (and 83.09 today)...

Barometers?

CanOz

 

[Country Lad]

This was from another thread.

...............the indexes I developed deliver only a cautionary message. It is a combination of such things as volatility, shares trading at highs and lows and a sort of calculation of the market sentiment…………........When the canary is below a certain point, I review and possibly tighten stops, pay more attention to the market sentiment overall and of each share and take more care when selecting a share to enter long. Or go fishing or take the opportunity to travel to remote areas without internet.

Time for me to go fishing, the cautionary message my canary is delivering is fairly clear for the moment.

Cheers
Country Lad

 

[marti]

Hi Guys,
First post on this site,
Regarding the post header, I'm also getting the very uncomfortable feeling that hedge funds ,major institutions et al, are all managing their exits carefully and taking anything of value of what's left of the mid market caps, their so called bot's have been doing this for the last year or so as they exit their positions and cash up it seems-so no, this dip isn't really a dip, it is a mass exit by the pro's managing their capital-that's why ASIC and the ASX are still allowing these 1 share transactions to be accepted as the large corporations massage their way out, but not the public, you or I cannot do that, I do know I have also held in hope, but these day's in vain I'm afraid.
Each day brings another denial or even more dismay as you see your investments continually sinking without any major reason and wondering why.
Pretty clear to see what's happening though.

 

[VSntchr]

Hi Guys,
First post on this site,
Regarding the post header, I'm also getting the very uncomfortable feeling that hedge funds ,major institutions et al, are all managing their exits carefully and taking anything of value of what's left of the mid market caps, their so called bot's have been doing this for the last year or so as they exit their positions and cash up it seems-so no, this dip isn't really a dip, it is a mass exit by the pro's managing their capital-that's why ASIC and the ASX are still allowing these 1 share transactions to be accepted as the large corporations massage their way out, but not the public, you or I cannot do that, I do know I have also held in hope, but these day's in vain I'm afraid.
Each day brings another denial or even more dismay as you see your investments continually sinking without any major reason and wondering why.
Pretty clear to see what's happening though.

LOL!

Plenty of exits but also plenty of insto's still becoming substantial holders of companies. This post is just ridiculous.
You do understand that majority of the funds HAVE TO HOLD (by agreement) certain % of domestic equity...surely you don't actually believe your own post!

 

[ROE]

Marti, I see plenty of new investors in my life time and they all in FOMO FOL and they all chasing the bucks
and when it doesn't work out...they blame it on manipulation, fund managers engineer their loss, bankers has sinister plots etc...etc...

you can not be a good investor unless you admit you are making the mistakes and taking steps to correct it
and learn to be a better investor and not blaming the market factors

all you doing is transfer your hard earned cash to experienced investors who has the right temperament and patient to invest in solid business that deliver result over time

 

[tech/a]

Marti, I see plenty of new investors in my life time and they all in FOMO FOL and they all chasing the bucks
and when it doesn't work out...they blame it on manipulation, fund managers engineer their loss, bankers has sinister plots etc...etc...

you can not be a good investor unless you admit you are making the mistakes and taking steps to correct it
and learn to be a better investor and not blaming the market factors

all you doing is transfer your hard earned cash to experienced investors who has the right temperament and patient to invest in solid business that deliver result over time

Aint that the truth.

 

[McLovin]

all you doing is transfer your hard earned cash to experienced investors who has the right temperament and patient to invest in solid business that deliver result over time

And they're doing it one share at a time; like Chinese water torture.

 

[chops_a_must]

Marti, I see plenty of new investors in my life time and they all in FOMO FOL and they all chasing the bucks
and when it doesn't work out...they blame it on manipulation, fund managers engineer their loss, bankers has sinister plots etc...etc...

you can not be a good investor unless you admit you are making the mistakes and taking steps to correct it
and learn to be a better investor and not blaming the market factors

all you doing is transfer your hard earned cash to experienced investors who has the right temperament and patient to invest in solid business that deliver result over time

Indeed.

For what it's worth, stocks on my watchlist as potential buys have really just gone sideways, and barely dipped at all.

I don't see anything that has changed in the stocks that were trending well. The trend is still in tact for these. They're actually setting up nicely if we get a move higher.