There tends to be these - what I call - SIKE! rebounds.
What that means is that there will be a steep dip, you think it's bottoming out so you buy, and sure enough, it starts to go up nicely, and then suddenly, usually a couple of days later...BAM! It dips way past the dip you bought at...and stays there for a long time. I don't know if there is a term for this.
Any strategies out there to help you determine that it's the end of the dip for this period?
Well, I used to have one which is "if it dropped 50% in the last month, buy it" and that worked out a treat for a lot of the time, because usually things that go down that much ends up going up a lot, and the recent down and up shows that it is a proof of that.
However recently I realized that I do not have too much money to really care about what is going on with the prices, so whenever I get a little bit of money, I just put it on my portfolio and that's it, I don't care where the price is because I am a long term investor and will sell 10+ years later, so that means the 28k to 50k price point difference will be very unimportant in the long run, it could be very important if you invest a lot, but I do not invest a lot and that is why I think that it is quite important not to judge the price right now and just keep on buying as much as I can afford to.
