ALIBABA GROUP HOLDING LTDUpdated buying at support level IS NOT a SURE WIN
Putting emotions aside about how unhappy, disappointed and frustrated with the China stocks, some people I spoke to are thinking to scoop more once the price reaches the support level.
Just because it has rebounded on previous support level does not necessarily means it will do so in the future.
It is possible, plausible and probable that it might falls through the support level and creates a new low. Nobody can tell you for sure. Do not buy just because you read some news that it is near the bottom but has no way to go except up. In Theory, maybe but in the changing world today and when top notch economists, professors and equity analysts have all gotten wrong about their predictions about China, what makes you think you will fare better ?
Also, just because some groups are heavily shorting the market to take advantage of the sell off, just doing the opposite does not make you a contrarian. Put aside your egos and get rational about your decision to go LONG. How long are you prepared to hold this stock for ? Are you really going to be OK if it continues to drop another 10-20% ? No sleepless night ?
Think Thrice. Take care of the downside from all aspects and leave the upside alone......
Just because it has rebounded on previous support level does not necessarily means it will do so in the future.
It is possible, plausible and probable that it might falls through the support level and creates a new low. Nobody can tell you for sure. Do not buy just because you read some news that it is near the bottom but has no way to go except up. In Theory, maybe but in the changing world today and when top notch economists, professors and equity analysts have all gotten wrong about their predictions about China, what makes you think you will fare better ?
Also, just because some groups are heavily shorting the market to take advantage of the sell off, just doing the opposite does not make you a contrarian. Put aside your egos and get rational about your decision to go LONG. How long are you prepared to hold this stock for ? Are you really going to be OK if it continues to drop another 10-20% ? No sleepless night ?
Think Thrice. Take care of the downside from all aspects and leave the upside alone......
Note
something is brewing. from the candles, we can see clearly the selling pressure has eased tremendously and a possible rally or trend reversal might be near the corner. Those who believe in this company financial health and prospects, this will be a good price to accumulateNote
In investing, there is no CERTAINTY except greed and fear. Even the latter has different degrees to it, depending on the macro and micro factors. We can see that the price did not revisit the support level at 60.60 and at 66 price level it continues to hoover in this narrow range. So, if you are always waiting to catch the bottom, you might be disappointed.....and missed the opportunity
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