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Re: PacificNW post# 71411

Saturday, 08/27/2016 4:26:01 AM

Saturday, August 27, 2016 4:26:01 AM

Post# of 685958
By the way, any time you are trying to make a possibly very dangerous 'catch the bottom' play on a stock which is down a lot, there is strong tension between letting it keep falling vs the risk that it bounces hard before you can buy it. Obviously it's much safer to wait till you see a confirmed bounce! But this is a super extreme case. If you are theoretically trying to catch a very low price, waiting is very rewarding as long as it keeps falling - you will get a much bigger bargain. OTOH, wait just one day too long and the really big bargain is gone - this stock could well open up $1 and be up another $1 in the first 30 minutes. There is no wrong way to play it, although missing the bargain all together is a much bigger mistake than paying more than you had to. It goes without saying that choosing a stock that keeps going down and never recovers is also a risk, and that this is a high risk situation (this is actually quite obvious, but some have been complaining about not including this caveat).
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