RE:RE:RE:RE:When will the bottom for oil and gas finally be in?? Boulter wrote: Nakate wrote: Problem with buying on the way down is its still going down, there are not enough buyers to stop the algos from executing their orders. You can always buy for the same price when it stabilizes and shows signs that the banksters have decided that the risks have turned against the short and distort and its time for the dead cat bounce.
Way back ... a few weeks ago, ECA touched just over $5 and made it over $6. Actually that price action happened twice if you go back a bit further. One could have run the logic you layed out above and purchased at $6 (now $30). I bought more at $4.30 ($21.47) last week, but that is wrong, according to the logic above. Using the above logic, buying at $6 a few weeks ago was sound, buying last week at $4.30 unsound. The two buys I did at just over $5 on the consecutive cycles mentioned above were also wrong because I did not wait for $6. I don't know where you come from, but around here, buying at $4.30 is better than buying at $6. So is $5. I concede that in this particular instance, if you have not purchased at all yet, you are currently winning this match. All kinds of people were besting me in early 2016 too around my last buys under $5, much to eventually be sold at $13 and $17. Did they best me in the end, or did they just watch the fat pitches go by, only to strike out in the end? The enemy of the good is the perfect. $4, $5, $6 I think in the fullness of time will all turn out to be pretty good buy numbers. Will someone, perhaps even you, score a $3? Maybe, but more likely a whole bunch of investors will just watch the opportunity go by because they can't stand the possibility of having a temporary losing transaction.
assuming this action is more market than substance then sure buying on the way down will eventually have its rewards and maybe the bottom is already in, Rarely does the market give back what it has taken without some kind of major change. Anyways I'd rather be safe than volunteer to be a bagholder