I think we all know why but here are some explanations
Seriously, why when we do actually hit our buy targets, the stock will most likely continue to fall? Well it requires more than logic to crack this mystery but I intent to share my take on the matter. Hopefully, more people will realise that it is not always a bad thing to experience such phenomena and how should we accept such things from happening in our investing journey?
Support turns to resistance
Let’s get the obvious off the table, we usually aim to enter at a support simply because it is most likely to bounce from that point. In fact, we might even increase the entry price a little to ensure that we do not miss the purchase. That said, buying at a support is always risky if that support level does not hold. We just need reminders on why this happens when it happens.
You only remember when it hurts…
