"Buy on the Rumor, and Sell on the News"

I'm surprised no one has mentioned this. Maybe Jim Cramer is acting upon this wall street
saying when he recommends selling some AAPL before the iPhone release. That's the "sell
on the News" part.

Buy when there's blood in the streets - sell to the sound of trumpets - another variation
of buy low, sell high.

Last edited on: 06-01-2007 03:30 am

The "Hail Mary Pass" to retail.

"Don't gamble. Take all your savings and buy some good stock and hold it till it goes up,
then sell it. If it don't go up, don't buy it."

- Will Rogers

Hi Chris, I think with stocks its more been the case that the "countertrend is your
friend". For instnace, if a stock goes down 5 days in a row (or if stocks in general go
down 5 days in a row) then its very likely that its going to snapback, reversing its
recent trend.

Even with commodities, the trend has been your enemy lately, which is why trendfollowers
like John Henry are down 50% from their highs right now.

Often quoted:
"The market can remain irrational longer than you can remain solvent" -- John Maynard
Keynes

Interesting quote. I was thinking about the efficient market hypothesis and originally, I
believed this. But after the Bubble of 2000, I'm starting to believe that the markets can
remain irrational and improperly price stocks easily.

James--

Please expound on your comment related to "the trend is your friend." If we are talking
about "chartology" it sure seems that the trend IS a friend. Perhaps you were referring
to the idea that nothing lasts forever???

Greed is good.

"The investors you meet on the way up you'll meet on the way down"

"An investment in knowledge always pays the best interest. "
- Benjamin Franklin (1706-1790) author, printer, inventor, diplomat, scientist

Valid