(I learned some of these from trading on the stock markets; not fun)
a) Take a survey. If most people feel it's a bubble, Buy : the bubble is just starting. This is a momentum trade.
b) Take a survey. If people have started feeling that "this is a new paradigm, things will ALWAYS go up, didn't you get the memo", with a particular zombie-like proselytizing look in their eyes, Sell. It must be "obvious" to them. For example, the exact High in Apple was hit when the article about this lady who put all her savings in Apple "because Apple only goes up, right?" was published.
c) Collect transaction data. Learn to identify Euphoria by jointly considering both price and volume patterns. Sell if Euphoric Highs have been hit.
d) The keep-it-simple approach : Buy if you want a home and the mortgage is not much more (or even lower) than the rent you would pay and you believe that you have a good chance of paying it off (no ideas of doing startups without a salary, for example!)
a) Take a survey. If most people feel it's a bubble, Buy : the bubble is just starting. This is a momentum trade.
b) Take a survey. If people have started feeling that "this is a new paradigm, things will ALWAYS go up, didn't you get the memo", with a particular zombie-like proselytizing look in their eyes, Sell. It must be "obvious" to them. For example, the exact High in Apple was hit when the article about this lady who put all her savings in Apple "because Apple only goes up, right?" was published.
c) Collect transaction data. Learn to identify Euphoria by jointly considering both price and volume patterns. Sell if Euphoric Highs have been hit.
d) The keep-it-simple approach : Buy if you want a home and the mortgage is not much more (or even lower) than the rent you would pay and you believe that you have a good chance of paying it off (no ideas of doing startups without a salary, for example!)