Three Bullish Bets for Traders
Experts in Mandarin Chinese tell us that the notion that the Chinese word for crisis is a combination of “danger” and “opportunity”
is false, and that the word for “crisis” in Chinese is every bit as fearful as the word “crisis” is in English.
But what doesn’t work for Mandarin may still be applicable to the
markets. As traders are reminded over and over again in the markets,
the best times to buy stocks are invariably when the trading world is in a panic and fearing that the worst is just around the corner.
How else could something as simple as “buy low and sell high” be so difficult for people to follow? There are any number of ways that traders can accurately define “low” and equally as many ways to define “high”. But the fact remains that when markets are reeling, many traders abandon their better judgment in favor of, essentially, waiting for somebody else to jump in and start buying.
And unfortunately for many traders, those “somebodies” are often the ones the average trader ends up buying stock fromââ”