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Bottom Calling - You don't have to be right to make money...

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December 29, 2009 – Comments (0) | RELATED TICKERS: OSK , MDR , CSIQ

This morning, I took a look at the portfolio / watchlist I created back in October of 2008. The name I gave to this watchlist / portfolio was "Bottom Oct. 2008". I don't remeber the details, but I guess at that time, I thought the market reached the bottom.

Boy was I wrong. Very very wrong. From Oct. 2008 to March 2009, the market dropped another 480 points or approx. 40% from 1150 where it was in Oct. of 2008. By all accounts, a terrible, terrible call.

However, today, just a little over 14 months, that same watchlist / portfolio is up 28%.

I also created another portfolio (watchlist again) in Nov. of 2008 (this time I didn't call it bottom), and that portfolio is up 69.9% since then.

My point is, you don't have to be right when you are calling the bottom (unless you call it right after the market starts going down).

If you pick the right stocks (for this you'll need some knowledge and some luck), buy slowly, can afford to lose some money (on paper) and don't panic (and sell), you can still make a decent money in the market when the market starts going in the other direction. 

I know all experienced investors know this, and that's why they welcome bear markets just as they do the bull ones. I know I personally can't wait for another bear market already... (Didn't get rich this year. Again. Need one more bull-year like 2009 :).

Good Luck in 2010 Everybody!

p.s.

Here are some notable winners from my Oct. 2008 portfolio: OSK 394%, YGE 218%, CSIQ 162%, SCHN 81%, GOOG 75%,...

And the ones from my Nov. 2008 portfolio:  MDR 204%, AKS 204%, CLF 136%, CML 133%, BX 109%,... 

I'll keep you posted...  

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