A simple question to ask yourself
Markets are numbers-driven but words are underrated.
The way we use words reveals how we think. One of the most-repeated questions in markets is “Is this the bottom?” Another one is “When will it bottom?”
Both questions imply a sort-of urgency. They are revealing because they says we should be deciding whether or not to buy now or right when something hits that bottom.
The right question to be asking is “was that the bottom?” It correctly implies that the time to buy isn’t right at the bottom, it’s after a rebound has been established.
Here is a technique to help you identify when a market has bottomed.
