A nice reading about profiting from panic selling: http://www.investopedia.com/articles/trading/06/ESM.asp
According to the article, basically panic selling creates a tremendous opportunity to initiate long positions, especially if the event behind the panic selling was non-material or speculative in nature (such as an analyst opinion). The article explained the panic selling process and introduce a model that can help the reader predict the right time to take a long position after panic selling occurs.
2 comments:
Great blog...hope you add some more recent post soon. I have started my own blog...check it out at http://ozfinance.blogspot.com/
Andy.
Hi Andy,
Thanks! I am planning to start my blog again soon. As a fairly new investor, I had a bit of a shock with the recent subprime crash, but thankfully I recovered all my loss now :).
I'll check your blog asap!!
Nanine
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