Thanks for the write-up. Generally agree with the idea. I think it's a way of updating your probabilities based on what other (potentially smart) people are seeing. If you are excited about the fundamentals of the business and stock is going up then you're probably focused on the correct things / understand the bull case well. If you're excited about the fundamentals or the stock is "too cheap" but the stock keeps going down, you may be missing important things, or market participants are currently prioritizing other concerns.
Investing when you have a favorable view on the fundamentals and those are the same things most market participants care about is a good setup for profitability.
Thanks for the write-up. Generally agree with the idea. I think it's a way of updating your probabilities based on what other (potentially smart) people are seeing. If you are excited about the fundamentals of the business and stock is going up then you're probably focused on the correct things / understand the bull case well. If you're excited about the fundamentals or the stock is "too cheap" but the stock keeps going down, you may be missing important things, or market participants are currently prioritizing other concerns.
Investing when you have a favorable view on the fundamentals and those are the same things most market participants care about is a good setup for profitability.
Yeah. Reviewing my past trades, most big mistakes were buying on a clear downturn, never with upward momentum.