i read in the finance manila forum a question about how to approach "corrections" which was posted last friday ... i think before anyone makes an attempt to answer the question .. one has to define first what the word "correction" really means ... so ...
question: what is a "correction'?
answer: the other name of the phenomena identified by instant genius philosophers in the stock market when prices decline and they were not able to sell their positions at the top of the price cycle ... (in short ... the ipit "investors") ... more sophisticated ipit geniuses call it a .. "reversal" :D
real traders simply call it ... "profit taking" ... the part of the "trip to jerusalem" when the music stops and they are able to each secure a seat ... those who are left standing .. they are the ones who call it a "correction"
to those on the sidelines with no positions ... its the time when lots of cash will be very handy to initiate entry positions when the "inverse ostrich pattern" appears (what is the "inverse ostrich pattern"?)
