Bro, what u see is on hindsight. Here is the fact. Take a paper and pen to do this exercise. Assuming u have 100k to invest in Citi. Citi's peak was 50+.
Now lets go back to the past, if u have 100k, at which point will u buy (no of shares x value of shares. U can even use averaging. Remember citi was > 50. Please do it on a piece of paper.
Here goes
At 20, will u go in and how many shares ______
At 10, will u go in and how many shares ______
At 5, , will u go in and how many shares ______
At 2.5, will u go in and how many shares ______
At 1.5, will u go in and how many shares ______
Many got burned by citi. Hahaha, bro, I was 1. But I made from other stocks. citi today is worth less the 10% of its peak.
Bro, look at Keppel Land stocks. Check it's peak and compare to today's price. Take into account the rights issue. Same story, it has not reached its all time high. This one I kanna lottery. My kepland shares today are free...after I sold 1/2 away.
So, what I am trying to tell u, hindsight looks easy. Go into actual implementation, u will never know the lowest point? And by that virtue, many will not enter - always waiting for lowest point.
Many got burned by stocks, especially those who practiced keeping long haul and bot pre Lehman. They are currently suffering what the property owners suffered in 1998. Some stocks never recovered to its hey days. Some stocks did though.
Food for thought.
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