The chart and commentary illustrate why it works to be a trend trader and practice sound money management when putting on a position in a security.
Don't buy all at once. Buy new highs on increased volume after a period of consolidation. Watch what a stock does AFTER it makes a move. That is what validates or negates the importance of the move and the likelihood of a continuation of the trend.
By buying in three or four small purchases you give yourself psychologic support to let the trend develop. And your average price is always below where the market is trading.
The signs of a bottom were when FB held $27 and then held $28 and then broke higher. Look at the volume on the upmoves. And the lack of volume on the sideways price action. This means that there is no urgency to sell..... YET. So while it is important to let a trend develop, it is also important to not hold on to any stock just because you have fell in love with it! Maybe you will make some money, maybe not. The thing is to trade well! Even good trades lose money and bad trades make money. But putting the odds in your favor will let you win in the long term over many trades.
The Chart:
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