Don't buy just buy because it is cheap

AMEX:EWW   iShares Inc iShares MSCI Mexico ETF
coz cheap can get cheaper......

If you have been to Bangkok streets market and are a good bargainer, then you are likely to bargain your way down the street, taking the cheapest offer that the shop owner is willing to offer you. Tip : Don't look back if you are not going to accept her offer or bargain further with her.

Same thing for trading as well. Just because it is cheap, do not fall into the trap of being an early bull (like what many are advocating to buy now). Nothing wrong if you subscribe into the DCA model (dollar cost averaging). But most retail traders I met or know have limited capital to trade in the market. That means, the smaller your fund size, the timing of entry becomes more important.

Like Bill Ackman tweeted : Bill Ackman
I am beginning to get optimistic. Cases appear to be peaking in NY. Almost the entire country is in shutdown. Hydroxychloriquine and antibiotics appear to help. There is increasing evidence that the asymptomatic infection rate could be as much as 50X higher than expected.

The more retail traders sell to them, the more they can buy at cheaper price from you. And because they have deep pockets and can buy in stages, they need help from retail traders in terms of volume . But the opposite holds as well. Retail traders have smaller positions and thus a buy or sell decision has to be more careful , isn't it ? Unless you have lots of cash to burn, that is a different story.

Anyway, someone Pm me last nite to look at Mexico and my view is bearish on it. Latest article here. A 3.9% contraction on the economy is no joke and with its slow decision making process, more help are needed across the business owners and the people there. Already , death rates and new cases are not slowing down in Mexico.

Trade cautiously , traders !

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