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Re: The Dhandho Investor - Mohnish Pabrai
I'm new to T/A and so far it told me when to get in and when to get out. :)
I won't buy a stock because the trend says to buy it. I'm trying to value the stock and figure out where it fits into the economy and what kind of future potential it has. Then I used the T/A to tell me when to get in. I don't think the T/A will be right 100% of the time. But the problem is, it doesn't matter how great a stock is, if the big guys are starting to bail I can only assume they may know something I don't. I can't call and talk to the company (I tried) like they can. Even if they don't know something, they can still drive the price down. If the stock falls out of favor, I'm hoping to not ride it down. I'd rather get out and wait until it looks ready to uptrend again. If I get out to soon, the worst I can do is give up some profit. Sitting on cash in the bank is never a bad place to be. :)
How do you guys decide when to sell?
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