In general, I do not really like to chase highs. Stocks that climb slowly up, are still ok, but stocks that shoots up fireworks, have bad tendency to suddenly go bungee jumping.
Granted this is very general, and there are always stocks that perform differently, but when stocks rally quickly, there's a high chance there's emotional trading involved, which is motivated by FOMO.
Traders who are FOMO driven, jump up bandwagon fast as many people are jumping on it. But they jump out equally fast on the first sign of trouble.
I do not have the time to keep on monitoring markets so closely to ride up and jump off quickly.
I would rather take my time to choose stocks that are beaten down and hopefully they remain flat or go up slowly, especially since I am an option seller.
I would rather slow and consistent returns anytime. Hence I will always prefer to buy low over chase high. I don't like bungee jumping in real life, there's no reason to like bungee jumping in stock market also. [Cool]
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