Pardon me, but this post is not about me. No, I am not trumpeting anything, in fact, if market falls further, most probably there will be many laughing at me catching falling knives.
But the point I want to make is, it is easy to do a paper exercise of saying when market goes down x I will buy Y, and when market goes down x+10 I will buy Y+20.
When it happens, there will be many noise in the market. "What happen if the 2009 bear has no more legs", "maybe my first round should be when market correct 20% instead", "many are predicting volality to increase, maybe I should wait for dusk to settle"
While some reflections might be valid, if not action is carried out, what good is a plan? Chances are if u froze at 20% fall, u will freeze at 25% or 30% fall. If your intial plan is always "no fat bear no hunting", and you are sticking to it, then you are the man. If u are shifting goal poles, then ...
Actually, when u see/ hear people doing a roti-Prata, aka flip flop in their plan and action, u know finally "fear" is striking the market.
It's not so easy to buy when everyone is fearful, isn't it. Just a few fearful and then followed by a growing number of doom talkers will make it harder?
Looking back, why am I so foolish to keep accumulating?
I have no idea how much longer or deeper the market will fall. But before the fall, I already knew:
1) there must be some "reason" for a bear to happen. Think Euro Scare, and Japan Earthquake. I hardly read any convincing reason except China Economy slowing.
2) I dun know if it will fall 20% or 40% or 60%.
3) I am confident of av. Price should at least be fair price when market returns to normalcy whenever it is. I might not be able to make a big bear killing, but I think the dividends should be the trophy even if after a cycle, the price is at the same place.