Don't try to catch a falling knife

A confession.

I sometimes buy individual stocks. Not often. And never with very much money because I really do practice what I preach and believe in having a fully diversified portfolio. (Besides, I have three kids in college. There isn't a whole lot of money to spare.) But, I will from time to time I will buy a stock because I think I have spotted something that most people have missed.

So, how do I with my little investing hobby.? Not great.

My biggest failing is that I try to identify when I think the price of a good stock has hit bottom. Almost always, I buy too soon.

What triggered this thought was the price of Citibank. I thought about buying it when it fell to $10 a share. And again at $8. And I almost placed an order when it dipped below $4.

It closed yesterday at $2.80 cents.

I am beginning to learn my lesson. I took the $2,000 I was going to invest in Citibank, and put into emergency fund.