Eyecity.com Inc (ICTY)

[gsfl]

A great lesson for traders... "A stock can go down 10% in the blink of an eye just because a single shareholders might be “fed up” with it or have any of a thousand reasons to sell that are not strictly “rational”. This is where it is your job to take advantage of the “irrational” event. It’s easier to do this when you a) have conviction and b) assume that the market is always clueless. If you have no conviction (don’t know why you bought it in the first place) then you will get scared when it goes down and are more likely to join the irrational seller. If you assume that the market is always efficient and right then you will also lack the fortitude to be a contrarian.

When I have a high conviction and a stock keeps sliding I have the opinion of “The market is getting more and more stupid… Thanks for the future returns!”. If I would have low conviction I would probably think “Oh my god, the case is getting worse and worse!”. The latter makes it impossible to ever buy low even though it is what everyone says one SHOULD do." THH