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Ramp Worm

09/08/16 5:31 PM

#91605 RE: Scotttrader80 #91603

I do not know.. Timing buys and sells is not a science. It has too many variables. SO you need a cost averaging strategy.

If you can't time it. Few can. And are buying a sizable position you 'layer' in.

Buy 1/3 now.. Then if it goes down more you add. If it goes up from here at least your in and you can either wait for a dip or chase it.

Chasing is NOT advised. As OTHERS will be chasing too and you could end up buying with the chasers buying.. That is exuberant buying and usually a mistake. Often when people chase it the early buyers sell into the run. Then it flattens out UNDER your original buy price and you end up playing catch up and nobody wants to begin a trade and end up in negative position. Believe me. I have done that and it sucks. Jim Cramer is always talking about this exact issue.

If you hold back 1/3 your investment money you have options. If you just Jump into it you have NO options left if it dives.

Cost averaging in is always best IMO. Never jump in.. Wade in.

Money Management will keep you in the game.

I hope this helps.. :)