12-21-2018, 09:09 AM
I just follow my gut, but typically make purchases all the way down. I keep a lot of cash on hand so that I can, and temperamentally, I hate missing a potential dip. It doesn't really bother me to buy some at what seems a good price to me only to have the price fall further. Then I just buy a little more. But I can't stand missing out on a good price when the shares rally while I waited for better. So when prices get into my range, I start buying. And if they keep falling, I just keep buying.
It is of course much trickier if you have a set amount to invest, and you have to choose between now and later. I agree having a plan is best. "XYZ is my highest conviction play right now, and if the price drops to (or below) $ZZ.00, I'll buy" seems to be the best you can do. Until your crystal ball arrives from Amazon, that is!
It is of course much trickier if you have a set amount to invest, and you have to choose between now and later. I agree having a plan is best. "XYZ is my highest conviction play right now, and if the price drops to (or below) $ZZ.00, I'll buy" seems to be the best you can do. Until your crystal ball arrives from Amazon, that is!