Why don't we suggest that a trader look for the lowest buying point in stock market?
How do you know what is low? tomorrow could go lower… or it may go up 2% every day for 5 days and then lose 20% the next day. You don’t know what the future holds.
I find that most people don’t realize that stocks that are “down significantly” doesn’t automatically mean anything — it can always go even lower. Look at Sears on a weekly chart: $SHLD It’s been declining for 10+ years, so I ask you — how do you know what is the low point — in advance?