Now comes the question how to avoid this mistake?
The simple answer to this problem is to accept the fact that none in the world has ever been able to catch the top or bottom in a market and one has to trade as per the prevalent trend in the market. As a thumb rule one can initiate a trade a little late instead of trying to predict the bottom, entering early and getting stuck!
Now comes the query that is it possible to identify the bottom and a possible trend reversal.
Well it can be done with the help of intraday tips as one gets into the hot stocks of the day and get out with the profit for the day.