GREY:XEBEQ - Post by User
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fdfd12on Mar 15, 2021 12:33pm
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Post# 32799216
RE:RE:Three Day Rule
RE:RE:Three Day RuleI agree ZouZS3.
That is the phyco of the market.
Others do not understand this.
That is what I wrote before with a basing process at $4.50-$4.75
ZouZS3 wrote: ZouZS3 wrote: Investors always want to buy a stock that gets knocked down sharply.
Day 1: The smart, big money sells.
Day 2: The semi-smart, kinda big money sells because they see what happened yesterday and realize that it's prudent to lighten up.
Day 3: The not-so-smart, small money sells because ... they've been watching the carnage over the past two days and have been largely frozen. And after two days of declines, they can't take it anymore. So they sell!
A big selloff rarely lasts more than a couple of days without a pause.
The big selloff has already occurred. So you may be feeling some pain, but that pain derives from a move that's behind us. The real question to ask is: How much further can my position go against me? Often, you'll find you would actually be looking to buy a stock if you did not already own it.
It rarely pays to sell when the pain is the greatest. And it often pays to buy when someone else's pain is the greatest.