A successful self trader – Rule # 27
This rule almost, always holds true. The best time to buy a stock is when the hope behind a stock is yet to play out. Hype is when the earnings may not grow but the valuation, as defined by p/e ratio grows. Hype is the time to hold on to your stocks. Hysteria is when everyone wants to buy and the market talks about; this time it is different. It happened to hardware, software, biotech and the internet. Eventually, hysteria meets a sad end.