Trading to buy into a company is investing. I always take financials into account, whether it be quarterly earnings, EPS, future products, growth, etc. Not to mention, I got into depth and study the movement of the stock, and make sure I buy it at the lowest I think it'll go. It's the best time to buy into stocks long-term, it's also the best time to buy into OTCs (marijuana) short-term.
Then you're wording it wrong. You are not investing, you are trading. And you never go long when any security is dropping and hoping it will rise. Thats just amateur.
You dont want to catch a falling knife though. Why would you invest when the market is dropping lol. If anything, if you feel very bear-ish, start shorting and when the market uptrends and your indicators are proven, start buying.Of course I'd want to invest when it's dropping, it's just the matter of right timing.
And if were talking investing, then you dont just invest because of its price going up and down. You didn't even take the financials into account. Or how is the current CEO doing? Industry sector? If you're confident in what you invest in, the "dropping" in prices will not affect you because your proper valuation of ABC company in X amount of years will be worth more than how it is currently.
Do you even know why the market is dropping? It's mostly due to panicked traders. Of course you can put the economic crisis/emerging markets like China into account, or even Europe, India, etc. Another reason it's going down is due to the Fed tapering (now only putting 65B into bonds v 75B ea. month). Like I said, if you don't take this opportunity to invest into a company that is financially stable and has high yields, but is dropping due to these reasons, you're a complete moron. I appreciate the input, even though it was completely fruitless.
Trading, which is what you are doing, is not investing: http://www.investopedia.com/ask/answers/12/difference-investing-trading.asp
Do YOU know why the market is dropping? What are traders panicked about?
If you understand tapering, you would understand that at this point in time, it is most likely that the Fed is only going to continue ramping up tapering (ie, reducing the amount of bonds they purchase each month at an increasingly drastic rate). So why then would you be buying into a falling stock NOW? If you thought tapering was a factor in the falling market, you would know that it will only get worse and that prices will continue to fall. So why aren't you waiting until they fall further to buy in?
I'm going to try to say this without coming off as an asshole, because I know you're not going to take my advice if I belittle you. So I'm honestly saying, no offense meant, that you should study up before you call other people morons for not wanting to "invest" in a falling OTC marijuana stock. I'm guessing that you just started trading in the last few years (during the greatest bull run in history). Markets are not always so forgiving. Try reading some Benjamin Graham, read Bill Gross' blog posts/reports, follow economic news (jobs reports, ISM reports, etc), and in my humble opinion, stay far away from technical analysis until you have a strong handle on fundamental analysis. Idk if you're in college but if you are, check out a Bloomberg terminal if you guys have one.