The investing strategy for someone with a regular income is to invest the same dollar value with every paycheck. They will average up or down depending on the price.
I don't have a regular income and I don't want to average up. So, I buy more as the price falls, always investing the same dollar amount. Because the plan is to buy more, I keep the initial investment lower than normal.
I always bid a little above support lines and place my bids ahead of time. I hate it when the price drops out the bottom of a support line and recovers before I get a chance to buy. I never chase a stock and placing a bid ahead of time is a good way to avoid that. If I'm not sure about a price, I pick a lower support line.
Prices fall when investors sell. If you don't sell, someone will borrow your shares and sell for you. Buying at ever lower prices is a good way to get something out of having your shares borrowed and sold.
What is your strategy?
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