Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

The Market Roller Coaster

We never really KNOW with certainty where we are in a market cycle. However most of us have a pretty good sense of how we FEEL about the markets on a regular basis.

A nice illustration of the market roller coaster is provided by Mark Argentino, a Mississauga Real Estate Broker. I often use Nortel as an example of how a “buying low” strategy can cripple a portfolio. 

When you can sell into greed and buy into fear you are increasing your chances of success in the markets. When you can’t find anyone disagreeing with your view of the markets it is time to be careful.

Remember that stocks are never too high for you to begin buying or too low to begin selling.  But after the initial transaction, don’t make a second unless the first shows you a profit.  Wait and watch.
Jesse Livermore