Right time to buy a stock is when the masses panic & fear takes over

Right time to buy a stock

The Right time to buy a stock is when there is Blood in the streets

The ideal point to open up long positions is when a market experiences a crash like move hence the saying buy when blood is flowing freely in the streets. The masses are always on the wrong side of the markets; from the tulip mania to the last market meltdown which took place in 2008; they have always been on the side.  The green circles in the chart below highlight the best entry points. However, this is a very long-term chart and some pullbacks might not look as strong.

If the trend is up, its the right time to buy a stock

Remember, if the trend is up as it currently is, you should be salivating at the prospect of such a substantial pullback. In July 2015 we welcomed a healthy pullback, we embraced sharp pullbacks in Jan and Feb of this year, and we will embrace it again as long as the trend is up.  There is no reason to panic at the possibility of a strong correction. We are already preparing for such an event, and as of today, we are going to take a defensive posture.

If the trend is up, its the right time to buy a stock 

Fear always comes in the way of opportunity; you need to understand that. At the present time, it is best to hold your gunpowder until the market pulls back strongly. History indicates that after a very strong run-up, the market usually experiences a relatively strong pullback.


Until the trend changes, the theme should be to ignore the noise, focus on the trend and the stronger the deviation, the better the buying opportunity.   Market Update Dec 15, 2016

We might be in for a stronger than expected correction; we are not stating the bull is over, and we will not state that until the trend change direction.  However, given that the pendulum swings in both ways; the risk to reward ratio from a psychological perspective is not in our favour. This crowd is always skittish, so one hard slap of fear and they will crumble and scuttle for the hills; as the trend is up, the stronger the pullback the better the opportunity.  When it comes to trading, panic is the code word to buy. And remember, the right time to buy a stock is when everyone thinks its time to sell and hide.

Additional Food for Thought 

Today everything is interrelated; we do not have free market forces anymore. Everything is manipulated; from the food, you eat to data you are provided.  If you are aware of this, you can plan accordingly. Identifying the problem is over 80% of the solution, and this is why most people do not know what to do because they do not understand the problem. Now you know why we are the only financial website that covers such a wide array of topics that on the surface appear to be unrelated but are in fact, deeply interwoven.  Mass psychology is a very powerful tool, and if employed correctly can help you spot the abnormal levels of manipulation, the masses are subjected to. It would be a good idea to familiarise yourself with the concept of “ Plato’s allegory of the cave.

If you seek freedom, the 1st task is to attain financial freedom so that you can break free the clutches of the top players who strive to enslave you. They want you to run in a circle like a hamster that runs on a spinning wheel; the hamster thinks the faster it runs the further it will go, but sadly it is going nowhere.

We teach how to use Mass psychology to your advantage, how to view disasters as opportunities and how not to let the media manipulate you and direct you towards actions that could be detrimental to your overall well-being.  Visit the investing for dummies section of our website; it contains a plethora of free resources and covers the most important aspects of mass psychology.

Secondly, subscribe to our free newsletter to keep abreast of the latest developments. Change begins now and not tomorrow, for tomorrow never comes. Understand that nothing will change if you do not alter your perspective and change your mindset. If you cling to the mass mentality, the top players will continue to fleece you; the choice is yours; resist and break free or sit down and do nothing.

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