by Happyland » 20 Oct 2019, 15:20
ceci wrote:Maybe still earlier to buy some or buy in by stages?
Buy in stages. It is better to dollar cost average. When you buy in "certain" amounts in given periods of time you will naturally buy more when price is down and less when price is up.
That way your overall cost basis will average to a decent cost. Known as dollar cost average.
This works very well if you are a long term investor. It works for short term trading as well but short term traders have a shorter time horizon in mind such as a year or less. Sometimes it is even shorter than a a few days. Sometimes they are looking to profit from an "immediate" catalyst (event) that will move the asset up or down.
[quote="ceci"]Maybe still earlier to buy some or buy in by stages?[/quote]
Buy in stages. It is better to dollar cost average. When you buy in "certain" amounts in given periods of time you will naturally buy more when price is down and less when price is up.
That way your overall cost basis will average to a decent cost. Known as dollar cost average.
This works very well if you are a long term investor. It works for short term trading as well but short term traders have a shorter time horizon in mind such as a year or less. Sometimes it is even shorter than a a few days. Sometimes they are looking to profit from an "immediate" catalyst (event) that will move the asset up or down.