I am fully aware that there many factors that are involved. But the price you’re going to pay for owning a particular asset should justify the risks involved with it such as those risks you have specified.
Therefore it is completely reasonable to say that paying as low as possible is a lot safer than paying higher price for such ownership. It is not so much about the fundamental of the asset or its upside potential that we are talking about here, but rather how much money you are willing to pay for bearing the risks and the amount of capital you could lose if things don’t go your way. Thus, the cheaper you pay, the less you can lose, and the decreasing price does not equal higher risk but quite the opposite.
It’s very simplistic approach yet people keep making it complicated
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.