I knew that market usually corrects in February – March. I was hoarding cash to deploy in the darkest days of February. The correction ce earlier than expected and midway through it I ran out of cash to buy at the bottom. What went wrong?
First, seing that I have a lot of cash and knowing that I will not need it until the end of February and seing how Greece is being decimated for budget deficit, I bout some NBG. I continued buying as it went lower and found myself overinvested. Still I had enough cash and would made a killing if,
Second, I starrted buying before VIX went above 25. Earlier I made myself a mental note that I will not buy before VIX goes above 25. If I followed it, I would have loaded up the cart nicely at the lows of last week and rode up with nice profits by now.
So, the rule for the near future: never buy when the VIX is below 25 and start selling when the VIX is below 19.
