The quote of the day comes from Adam Hamilton,
“The one non-negotiable prerequisite for a major interim bottom to be carved is for traders to be paralyzed with fear, doubt, apathy, and even loathing for a suddenly out-of-favor sector.”
Wow, who would want to buy stocks in that environment? Not many. Therein is the difficulty of making money in the stock market. As opposed to buying at the bottom, most wait until everything looks rosy. In May when gold was trading at $700, everyone wanted to buy. Now four months later at $590, buyers can’t be found. Professionals profit off of your emotions. Thus, they were selling Gold at $700 and are probably scaling back in now.
To be successful in the market, one must put their emotions in check. The best way, for most, is to use a dollar cost averaging strategy. It is a structured plan that takes the emotions out. There are several articles for your review in the DCA Experiment and Dollar Cost Averaging categories.