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Re: Have you ever tried to "catch a falling knife"?
Some nice comments Soultrader.
Have you ever tried averaging down on the way down?
In the past I have put aside an amount of money for a particular investment, and bought on the way down, e.g. invest 25% initially, then 25% lower down, etc. This has allowed me to average my entry price on the way down.
The idea behind this technique is simple - I will never find the bottom, but if I can invest a % of funds at what I believe to be good value prices on the way down, then I should end up with a decent average price. It is human nature to have a knee jerk reaction to bad news, and this can open up great buying opportunities.
If only I had tried this technique more often than investing all funds in one go, when trying to "catch that falling knife"!
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