Funds Lump Sum - Buy Falling Or Rising

[kenjonbro]

I tend to look for best performing funds over 5 yrs - I've been tempted to invest in funds that have a performance line rocketing skywards - but they could have peaked and I might be buying at the top? (of course they could continue to rise)
Also I am strictly on about initial lump sum investment of £500-£1000 -(so pound cost averaging does not not need to be factored )
So, as a general rule of thumb(important point) is it better to hitch a ride on the way down rather than on the way up ?

[Gizmonster]

Just because a stock/fund has shot up, doesn't mean it will continue to do so .... nor does it mean it's due to fall anytime soon.
On the flip side, a stock/fund that has fallen sharply, doesn't mean it will continue to fall, nor will it stop falling and shoot up.
You need a crystal ball .... that's the best I can do.
I like to dabble in shares and I've had my fingers burnt a few times ..... and I've been lucky as well.
If you find a lucky crystal ball, can I borrow it please??

[kenjonbro]

In general have you had you fingers burnt buying at the top or at the bottom ? ...or even middle ?

[Gizmonster]

Bought Sainsbury's at approx £3.50 when it was on the up. It rose to over £4 and now it's approx £2.50.

Bought Vodafone at approx £1.70 when that was on the up. It's gone up and down since, but it's now approx £2.40.

Bought Avanti Communications at approx £2.40. It rose to approx £3.20 - it's now at £2.10.

Bought Oxus Gold at approx 2p when it was going down. It rose to 4.5p - it's now approx 3p.

..... not much of a trend here in my opinion .....

[kenjonbro]

Oxus Gold- penny shares , heard they are best avoided ? I want Warren Buffett's crystal ball ..

[Gizmonster]

////// Oxus Gold- penny shares , heard they are best avoided ? /////////

..... depends on your attitude to risk/reward.

Oxus Gold are unlike any other penny shares at the mo .... they are currently in arbitration with the Uzbekistan government. The hearing was heard in May 2014 and the result should be out very soon (hopefully!!).

If the result goes against them, the shares will be worthless; but if they win, the shares will prob multi-bag ........