12-14-2018, 09:32 PM
(12-14-2018, 08:51 PM)Phidius Wrote: I just bought a few shares, so currently just 1% of my portfolio. So here is my question: how do you grow a new position? 1) buy chunks at a time and hold 2) buy and wait for dips. 3) sell price jumps and move on until you can buy back in at a sweet value?
For me it's a mix of 1 and 2.
Most of us put some new money into our portfolios monthly. I personally invest this new money in 2-4 different companies every month, main idea is to buy those stocks that seem to be fairly priced at the moment but of course I also keep balance in mind. As long as the stock in question doesn't rise too fast, I'll end up buying chunks every once in a while.
Sometimes it this also fails. Example: I wanted to get in on OMC when it was around $67 - $68. I remember selling a couple of $67.50 puts but they never got assigned so i ended up just buying a small chunk around the same price. This was supposed to be the start of a long term position. But now, in a couple of months, the stock has run up from those levels to $75+ and I don't really feel comfortable buying at this level... especially when there are other good deals to be had. So now I'm stuck with a miniature position... I'm very much considering selling it because I don't see a point in keeping such small positions and I don't feel like adding.