10/20/2007

10-20-07 - 1

I've got a new trading strategy that I'm pretty excited about. The market goes through these retarded panic selloffs that make no sense where people sell mutual funds that have various stocks. Some of those stocks do indeed deserve to fall, because the bad news affected them or they were previously overvalued in bubble sectors, but some of them don't. Some of the stocks that fall are just solid basic companies that weren't involved in the crazed bubble or the bad news and they're just falling because people are in a panicked sell-off mode. Recently there have been quite a few 2% drops in single days which gives you a great opportunity to buy into things at a discount. If I had some real guts I'd do some kind of leveraged bet thing that could return a lot, but I don't really know about all that junk, so I just use it as a chance to buy into things that I've thought were solid.

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