ALC Chart, page-1000

It's amazing how the market follows the market. I have already highlighted in detail in previous posts how volumes have dropped off substantially. It's times like this that one can really see that the herd mentality is alive and well. Investors were jumping over themselves buying ALC between 12c and 14c by the bucket load when they did not have nearly as much as what they have now in terms of signed contracts.
Today we have had a staggering $12500 invested in this up and coming company.
It reminds a little bit when the market crashed in 1987. It all happened in the month of October. When it finally stopped the Australia ASX had lost about 45% of it's worth. Mind boggling stuff.

The panic was beyond belief . Investors were selling as if the world was going to end tomorrow.
I remember speaking to an associate of mine who was a very wealthy individual . After the market had dropped about 35% he said to me, I reckon it's time to buy. So he did. It continued to drop further and he continued to buy more. He allocated a certain amount of money which he invested each day .
I asked him why are you buying when every one else is selling. He's reply was : Because it's cheap.
Needless to say he went on to make a lot of money . He was buying mainly what we would refer to as Blue Chip companies. I thought at the time what a brave man he was, to go against what the rest of the market was doing. Never an easy thing to do.
Later I would realise he wasn't just brave, he was infact very smart.
He knew that these stocks would eventually rebound which they did, and he took full advantage of this fact. Obviously having the money and the time to capitalise on these investments is a must. That goes without saying.

I discovered many years later there was a particular saying that described what he actually did, and that was simply, BUY when everyone else is SELLING and SELL when everyone else is BUYING.

I changed jobs and lost contact with him, but it taught me a valuable lesson which has stayed with me..

Have a good weekend guys.