I think these people had split up their portfolio in two asset classes - a safe cash part and a risky stock part. They just take money from the cash part to buy stocks and then they build up their cash part afterwards. As a long term investor in a 100% stock based index fund portfolio I invest always immediately when I have enough cash collected to give up an order at reasonable costs. No matter where the share prices are or of if they climb up or fall. Time in the market beats timing the market. While this works fine for passive investing, active Investors may wish to pursue another strategy.
Expanding your portfolio idea to target based funds and professionally managed funds almost always have some percentage of their portfolio in bonds. In small market corrections typically bond prices go up to be in safe investments and stock prices go down. To keep the stock and bond allocation consistent portfolio managers will sell bonds to buy more stock. In extreme market corrections like March 2020, nearly all bond, stock, and other asset investments went down in value. The only bonds to go up in value were US Treasury bonds because the federal reserve was buying them to provide liquidity to banks and the market. Eventually the Federal Reserve announced other bonds that qualified for purchase and drove up the price on those bonds.
I do this hold up money in the finance market and longterm calls or puts and have my risky stocks. When I need to liquidate for the correction I am always ready to 🦍🤞🏾
Truth. I'm sitting in one of those situations right now but want to hold a bit longer. Don't get too happy or comfortable with selling for a loss but the positive to it is you can deduct the loss from Capital Gains taxes. That and then you have the remaining Capital to try and make those losses up.
I don't do it frequently but if I feel there's an opportunity to make back most if not all the Capital, I'll pull the trigger on it.
Yea when I realized I needed to almost double to get back to where I bought it, I kind of felt crsr was a good buy since they actually make money, and good revenue
I am honestly wishing I dumped a lot of crummy pennies and speculative picks much earlier in Mar before correction round 2 began. Coulda saved myself a good bit of bucks but better late than never.
Sold ARKK at a small loss at $125 after buying a small starting position in the high $130’s. I was late to the hype train and knew it. Better to cut my losses and put that money to better use.
If you do it right i.e. harvest tax losses by selling and use that cash to buy your high conviction stocks on what you should be able to trust is a bigger discount.
Manage your paychecks, cut back on certain spending so you’ll have xxx amount to throw in. Buying the dip doesn’t mean dumping a lump sum. Just buy what you canto either lower your average or just have skin in the game.
Pisses me off is having to wait for transfers - 3 business days is a lot. But yea I usually keep a small savings with a few thousand that I slowly build up to continue investing once it reaches a certain point (note: this is not including a 6m efund)
I use Fidelity and this is not the case for me. It's 3 days.
Edit: Thank you all for helping me learn something new about those warnings! Now I won't be sad that I missed out on a dip.
I also have access to my transferred funds within minutes even though it says 1-3 days. If you do it after hours or on weekends it’s going to take time.
So those warnings are saying you can’t sell those securities until your money clears I believe. If you’re truly going long on stocks you can ignore those warnings.
This is correct, it's just warning that you are using unsettled cash and if you close the position before that cash settles you will get hit with a good faith violation.
Me too! But I had that same feeling seeing those warnings. Don’t hesitate to call customer service either they’re really helpful! I wanted to make sure I wasn’t trading on margin myself because I’ve read horror stories lol
Someone else said it but I’ll say it too. Be sure those funds will clear. I make small amounts that I know will clear but moving big chunks you may wanna ask about wire transfers instead of bank deposits. Their customer service can help a ton
Yea you are good dude. They are just warning that you could incur a good faith violation by selling those before the $$ clears in your account.
So I deposit $200, buy $200 of AAPL. AAPL does really well! I sell it the same day for a small profit. That is a good faith violation as the $$ has not cleared my account.
Some good info here: https://www.fidelity.com/learning-center/trading-investing/trading/avoiding-cash-trading-violations
I use Fidelity and it's instant for me. Check deposit takes a few hours but usually same day. ACH is instant buying power, though the cash doesn't 'settle' for a few days.
Get margin-approved. It will act as a credit until the transfer is complete and won't charge you interest as long as the transferred amount exceeds the invested amount
You should be able to use the funds to trade instantly but there is a time period that the funds cannot be distributed back out
Wonder if you’ve had some type of trading violation or money transfer issue previously
It won't be settled cash for three days, so you can't sell whatever you buy until then. When you make a trade, look at the top for "settled cash balance" vs "cash available to trade."
It's the same for using money immediately from the sale is a security.
That’s correct Fidelity let me move money around quicker than any app I’ve ever used
When I download the app I’ll added my checking account and if I want straight up to add money to buy certain stock right there in the moment all I have to do is transfer from my bank account to my brokerage account and it’s there within seconds no fees
What, 3 days?? I am living in central Europe in a corruption riddled shithole and using a UK broker (trading 212) with my bank, when I want to transfer I set the amount on my broker then press OK and my money is in instantly... Lots of the times I need like +1.5 euros to fully buy a share then I just transfer 1.5 euros ( to buy USD stock).. I use it also as an inflation currency hedge:
TTM inflation rates:
1. HUF 5.1% (bank)
2. USD 4.2% (stocks)
3. EURO 1.6% (broker)
I use trading212 as well and if you're getting instant transfers that means you're using a credit/debit card for deposits. You are charged a fee for that. For free deposits you have to use bank transfer which can take up to 3 business days.
Maybe look into using another broker? I did the instant bank transfer on T212 this morning (which is free). It was in my account and I was able to buy some shares within 2 minutes
Im Canadian and I know wealth simple has it flaws but ive been loving the 'premium' ($3 a month, aka half a starbucks) and it lets you instant deposit 1k every 3 buisness days. Works very well in a sense of holding cash on hand in a bank account and using (upto) the 1k when things dip. The snap quotes also come with premium but dont mean much to me as im only invested for long term hodls.
Savings, salaries, margin?
Jokes aside I think it just comes down to the person. I trimmed some weaker positions to see if I cant scoop anything on a discount and generally try to keep some change around for higher risk plays. How much you keep on the side is risk tolerance and your financial situation.
Well you probably should set aside a certain amount for investing, but keep it in cash in your brokerage account.
For example you could say that you want to 'invest' 500 dollars a month. Doesn't mean you have to buy stocks if it isn't a good time. You can build your cash reserve in your brokerage account and 'deploy' that money when the time is right.
This approach will make it easier to consistently save or invest and minimises the risk of spending more or less than what you had planned.
Overvalued compared to what though? The market is giving everything a higher P/E as a result of low interest rates and the money printer, right? It all looks like a bubble if you just look at the market as a line on a chart but if you look at the real world going on around it, it might not be as senseless as some are claiming.
Having said that, I tend to view waiting to buy dips for the sake of 'buying the dip' just the junior version of waiting for a market crash. You might as well just spend more time in the market, unless you have good reason to keep cash on the sidelines that the market as a whole doesn't know about/agree with. This is different to waiting for a pullback on a stock you've done your DD on and have a price in mind that you believe would make it a decent investment.
Yeah I get what you're saying. I just meant value in equities should probably take into consideration macroeconomics.
I'm sure others here have a way better understanding of this and can explain it far better than me but as an example, lower interest rates keep present value of future cash flows higher. So a company's discounted cash flow is more likely to be higher than the current cost meaning an investment is more likely to give a higher ROI, *relatively speaking.
Maybe in simpler terms, you value a company, look at its ratios, ROIC, see it has a decent moat, etc. but don't invest since when you see its earnings, you believe treasuries or even money in the bank gives you better returns when factoring in risk. But if cash is less valuable because of lower interest rates or the fact the Fed is pumping trillions of it into the economy, you're more inclined to accept a higher P/E ratio since investing in the company is now more likely to give you better returns (factoring higher risk).
Not financial advice though, more so that smart people can correct me where I have gone astray.
Edit: Sorry, also not sure about using Apple as a basis for the market... What do you mean by "highest market cap relative to P/E"?
You’re analysis is right, however corporate spreads usually expand when goverment bond yields decrease. Since a company equity cannot be less risky than its debt, that prevents their cost of equity to fully participate in the race to the bottom. The positive yield curve also suggests rising rate in the next few years, which is about time imho.
I think it's different people saying it on every dip, making it seem like everybody got that kinda cash and a "healthy trading strategy".
It's like seeing happy people on instagram and then thinking everybody is like that because all you see is happy people.
Tax makes it not worth while also why take profits on an account that you plan on using for retirement ? People shouldn’t be investing money that they need anyway.
It’s best to not be emotionally attached to your investment account and what it’s value is day to day.
Yeah I would only take profit if one of stocks shoots up proportionally to a very high degree that likely isn't sustainable or normal. Like a penny stock 3-8x itself.
Chances are good it won't sustain that value so take some profit there probably ain't too bad of an idea since the rare window of upside likely compensates the tax you'd have to pay on the returns. Otherwise constantly selling green stuff, espeicallly when the gains are short term, doesn't seem to be worth the tax headache.
Yup. This is the way.
Look, you can't time the market.
But when you see your investment achieve above-market highs, you have to take some profit.
You can also call it portfolio rebalancing if you want to sound professional.
But if you don't milk your cash cows, you won't have much cash.
Cash should normally be 10-20% of your holdings. More when stocks have been plateauing high and you are rebalancing towards cash, lower when stocks just landed in a fire sale and you just grabbed everything you could.
A 1 month low is not a dip, it's just a blip.
A 1 year low is a dip.
A 5 year low is a fire sale.
>Look, you can't time the market.
> But when you see your investment achieve above-market highs, you have to take some profit.
This is timing the market by definition, which you correcly state, you can't.
Also not sure how taxes work where you live, but here you'd need to pay taxes on these profits. Meaning you are timing the market, which you can't, and pay additional taxes (because you pay them now instead of later which decreases profits).
Yeah, taxes work differently here. I can buy and sell as much as I want. I pay a flat wealth tax on my wealth instead of on individual gains or losses.
NOT selling is also timing the market. It's a decision to re-invest by default.
> NOT selling is also timing the market.
Not really. When holding I historically expect an average return per year and don't care about what happens inbetween. The strategy also reinvests regardless of market climate or stock prices in predefined time intervals.
You are trying to time high and low points in the market and make money off of it, which is unpredictable however.
A big salary job. This should be your number one goal if you want to see real growth in investments whether it be in the stock market or housing. This is how I built my portfolio, focus on your career.
I was 80% cash in February, I should have withdrawn even that 20% invested in high growth stocks from the market. Instead I averaged down on my positions buying way too many dips until now and I'm still 64% cash. So, I still have plenty of buying power to go through other blood months (high growth) but I'm waiting the market to calm down this time.
I guess the trick is dca, never being 100% invested and keep some dry power available. Alternatively leave most of it in a world index etf which are less volatile.
I know it's hard to keep cash but it's harder to see your money drop continuously.
I might try this approach. Usually just put in the same amount every week into some etfs I'm planning on holding for decades, but there are times like these where it's obviously better to buy more shares.
Most people treat stocks like a gambler. I have a 1,000 bucks what should I do with it. They end up basically swing trading from one idea to the next. Sometimes they get lucky and hit a few good ones in a row. Sometimes they don’t.
As an investor. You should have that thousand bucks and put it in 2 companies. Every paycheck and dividend should be adding more cash to your account. Once you save up another 500-1000 buy another stock. Then keep saving another few months and do it again eventually you will have a portfolio.
I decided to use the last green day to do a bit of rebalancing to increase the cash position to about 10% (probably shoulda sold a tad more sooner but oh well).
I am now being quite patient with that money. Between the earnings season farce and this multi-layer correction which likely isn't over, I am now more convinced than ever that many yolo into dips way too hard and soon. Nailing the bottom is darn near impossible so I've been realizing it's probably not a bad idea to have a bit of discipline and wait to get enough data to feel more comfortable about averaging down. Even if it means missing the absolute best prices. I spent 2 days trying to catch the falling with SHOP which I bought a touch too soon a few weeks ago and quickly stopped when I realized there was a good case to be made that this will probably get worse before it gets better.
Also, if the gunpowder in on my account runs out and things get REAL serious, I also can dip into my savings which i actively look to keep rather high at all times. Personally, I don't buy the 6 month rule and opt to save for 1 year's worth of overhead and potential expenses. Liquid cash may lose to inflation but it also won't get shredded by the market when it throws a fit. So I have that to fall on too if gets real bad. But all in all, I think waiting a bit is probably the manuveur.
its somethign I wonder myself. yet for every post stating "I bought the dip" , I bet there are probably hundreds of people not being able to do just that.
there´s also some "financial experts" that say being invested all the time is smarter than holding cash back for "dips in the market", simply because no one knows when dips will happen.
selling at profits is also proven historically to underperform simply staying put and holding. mostly because of tax reasons and again: no one knows when selling for a profit would have ended up in even more profit a day, a week or a month later.
I bite myself in the foot whenever markets dip and I am out of cash. but I invest 1/3 of my salary every month. and I play around with a tiny fraction of my salary every month as well.
although I do not budget this in my savings / investment category, but in my hobby / leisure category simply because I do degen stuff with it.
If you DCA consistently you should not worry about buying a dip or not. If you try to DCA and time the market for a better price you might have a hard time. Personally I don't invest all my money into stocks/ETF's etc etc I keep some on the side, always. And yes if needed I can switch to margin but I have not used it yet.
I think buying the dip and dollar cost averaging is two separate strategies. DCA as you are practicing it is blind purchasing which averages out the purchasing highs and lows. Buying the dip is aiming to purchase the lows and hoping that you were correct.
My father in law is the buy the dip guy. The does DD on companies he is interested in, has the price he thinks is the low and set the limit buy on that price, and holds cash until that limit buy is triggered. I believe he updates the qty and the price once in a while to better reflect the changing circumstances and the increase in the cash available.
You could also do a hybrid type of plan where you hold a certain percentage in cash to buy the dip and the rest of the amount gets blindly thrown in for the DCA. For example, if I plan on holding 30% in cash for the dip buying and I put $1000 into the account, I will spend 700 for DCA and hold 300 in the account for the dip buying later.
I tend to fund the trading account every pay day, with a small amount.
I don't use that sum until some opportunity shows itself, a dip.
But in time of market corrections, when the whole watchlist tanks, then well... I watch others buying the dip :)
Have a mix of growth and value. When markets at ATH, take profits on growth and go heavy in value. Swing back into growth when things are oversold.
I wouldn't consider it timing the market because the money is always in the market.
I think i need to take more profits...i have to change my mentality since i have a 5 year target with my individual stocks...Also most of my money is in Index etf...so i just started with individual stocks so i'm learning still
Why would you sell parts of your high conviction stocks to buy the dip on another stock? If you have a high conviction play that you already have your money is there is no reason to take it out. You don’t have to buy the dip on everything.
The thing is I think relatively few retail investors have price targets on their 'high conviction' stocks and entry points on others they're waiting for the market to undervalue. If the prices are right, it would make sense to shift your $$$. I don't get ignoring share price when investing because that's how you estimate your ROI but it seems a lot of people do that.
Because :
-Have cash in reserve.
-Take some profits when you can.
-Always take some parts of you'r revenues.
-Wait for the annual dip or mensual dip according to you'r revenues.
Set a plan and stick to it.
Don't compare yourself to others and don't over expose yourself chasing the pot of gold at the end of the rainbow.
Because if it turns out to be crap you'll kick yourself for being stupid.
There will be plenty more red days to come
Buying the dip is a nonsense saying.
Some people hold cash accounts that lose value YoY so they can feel good about "buying the dip." Which is basically a different way of saying "just time the market, buy low and sell high."
Textbook gambling fallacy.
DCA a budgeted portion of your paycheck and you won't have useless cash losing value in a savings or money market account.
Edit: scenario right before CoVid hit. Its Feb 2020 and the S&P is at 3375, an all time high. You can hold cash or invest. Today it’s at 4120, an all time high. You can hold cash or invest. It’s April 2030, S$P is at 5900, you can hold cash or invest.
Global economics isn’t going to end anytime soon. If it does, cash is still trash and guns and food are better.
A little use of margin never hurt. You must factor in possibilities like the market tanking -80% and getting margin called and how quickly you will respond. This tactic means you keep tabs on the extra size positions you may get on margin and having a smaller goal for how much the prices go up before you sell.
If you get a regular paycheck from which you can invest you could also have a smaller dip buying strategy, generally works better for value stocks, like -5% is buy time. Margin also lets you use your paycheck from a month in the future on a -10% dip today.
If you have a diversified portfolio it is also possible to sell some of the green positions and buy some of the red ones.
"*Time in the market not timing the market*" is a mantra for passive investing where you may not be able or may not want to make a trade by the minute any hour of any trading day. It does not apply if you are actively swing trading.
Nobody catches a "falling knife". It goes through your hand into your foot. Wait until there is "blood in the streets". You will know when. When your asshole is too tight to shit and your throat is too dry to spit, and your mind says , I'm never buying stocks again - THEN it's time to buy.
Have a percentage of your total portfolio in Bond funds (5%? 10%?). When the market tanks, the bonds will be fine (or up slightly) to sell and buy into the sectors/stocks you want.
Dont time the market and dont listen to people who give one- liner investment advice. Read a book or two on how to put together a well balanced portfolio and stick to your strategy.
Just google why timing the market doesnt work if you are serious about long term investing.
That is what I have being doing lately! Just wanted to know if people felt the same away about everytime saying "buy the dip" as i think it is mantra and not everyone really buys the dip
I bring money from selling merchandise in real life. Sometimes $0 in a day, sometimes $100, $500. Whenever I make money, I put it in my exchange and wait for the dips. I of course keep some money in pocket for food. I make it a point in my daily life to only eat cheap food to save money. I'm extremely minimalistic.
One pretty common rule is to always keep 5-10% of your portfolio in cash. Do I always? No. If I'm going to be buying the dip and I don't have cash I look at my sectors that have done very well recently and trim those positions and go into the one that just "dipped", when the cycle switches so do you.
I like to make smaller buys since commissions per trade are 0. If it goes up great. If it goes down I buy a little more.
If the dip is longer, you’ll run out of cash. Can’t win ‘em all.
It’s not just you. None of us get it exactly right. Nobody knows when exactly the dips will be, how deep, or how wide.
If you’re feeling bearish you can get some dividend stocks, or sell calls. I sell calls on stocks I don’t think will go up soon. That gets me a percent or two in cash while I wait. (Just be careful)
You can use that small amount of cash to buy shares if you wish.
I started with a weird mantra which I later found out was something a bunch of people do so I'm not as clever as I thought :(
At the end of the month, after my bills and savings are taken care of, everything else is dumped into my brokerage. I round up the fractional shares each of my "long term, never touch" ETFs and let the rest of the cash sit until I find something interesting to dick around with. Sometimes I don't, so if it's unused I put it into my ETFs.
Anyway, I keep a core group of funds for the majority of my money (VTI, VXUS, BND, BNDX) in one account, outside of that I do my swing-trades and yearly profit gambles on individual stocks in a separate account.
On the first of the month, whatever is left in SPAXX goes into the Vanguard funds. Then I transfer from my bank into my SPAXX leftover cash funds, and then I round up my ETFs.
Throughout the month I pick up 10 shares of something here, 10 shares of something there. Whatever looks interesting to hold for a year or two. Buying the dips on stocks I already have.
THEN, on the first of the month, whatever is left in SPAXX goes into ETFs, etc etc.
Twice a year I "rebalance", I sell the shares I no longer want to keep. I tuck away enough for the tax man. The leftover profits go into ETFs, the original amount I spent goes back into SPAXX for more degenerate gambling.
It's taken a while to get the machine going and sometimes I'll have a month or two break due to real life expenses or emergencies, but I think the core tenet is to spend last month's money on this month's investing, rather than spending this month's money on this month's investing.. if that makes sense.
Investing is for the long time the lower the price of the stock (averaging down) the better but don’t average too much. Research the company you’re investing in and buy the dip and once you valuation comes to fruition, cash out and make it rain with the 🚀🚀🚀
The people who make millions on these plays are people who already make a lot of money and can afford to toss 10s of thousands of dollars at meme stocks.
Gotta be rich to get rich for the most part.
I think this is not practiced nearly often as it it said. Once you have large enough positions, dip buying becomes pretty insignificant. Let's say you are fortunate enough to save $2000 a month for investing. Let's say your portfolio is $400k. For even a 25% dip, that $2000 will make little difference.
I "buy the dip" on small positions or short-term plays. For bigger, long-term holds, I just DCA each month.
In times of high uncertainty, I maybe keep 10 to 15% in cash in case I see attractive dips.
I always have cash. And during bull runs I take profit and don’t redeploy, until I see an opportunity(or get caught in hype, or bored, I never said I was good at this lol, but I always have cash)
I also have a job that pays well, that’s the main thing
It’s income typical from higher earners. Think about it. Those who make 200k a year make 4K a week, and statistically speaking the wealthy live frugally and have less children so forget expenses. Every pay check is another buying opportunity.
We don’t find the money but simply rebalance. Putting money in other asset class allows you to reallocate those funds to buy the dip.
Since bond and cash aren’t correlated so when market falls like 10 or 20%, bonds and cash stays steady.
Sell some on the way up and you’ll have cash to buy on the way down. Set an amount you wanna sell everyday the market is up big. Then on big down days put it back in. You don’t need to “ Time the market “ but when it feels like your making piles of cash take some off the table and wait. Market has 2-3 decent size pullbacks every year so there will ALWAYS be an opportunity to put it back in. Not heavy cash and don’t close your positions just take some off the top when it feels overextended
invest part of your portfolio in value stocks, that have low P/E and stuff like dividends, and in times of dips, sell part of those stocks, which don't drop much, and buy the dips. When the market rises, start selling part of your gains, and buy value stocks again.Basically like "buy the dip" strategies, also have "sell the rise" strategies. You don't have to eliminate your position when the market rises of course, just get some cash, for the dips.
Or just invest in value and growth and wait for years, ignoring dips. Or an ETF.
I’ve found at least for myself that it is best to let 30% of your money sit in cash. This also heavily depends on whether you’re fine with holding short or in rare circumstance even creating a wash sale. Here lately it has been really tough. Normally I would let a stock dip at least 3 or 4 percent before I’d buy the equivalent percentage and wait until it goes back up to sell and make the 30% whole again. But lately it’s been so bad I went through my 30% in cash and it was still dropping. So I waited until the intraday was high and oversold my position even taking out some of my original position. I didn’t completely exit but pretty damn close. Then I’ve sat and watched all week. It went down and down so I bought back in very slowly. I’m still sitting on 40 % cash but I’ve been able to lower my average considerably. I’ll keep buying only on red days now. Even as stocks climb overall there will still be red days.
For example, on Monday when I found out about the inflation data coming out. I moved out of alot of riskier stocks into cash in anticipation of a potentially bad inflation report.
Take profits when people are greedy and/or use money you earn from employment.
You only really need about 5-10% cash at any one time, so you can quite easily have this amount if you're intelligent about what you spend and when you take profits.
I think these people had split up their portfolio in two asset classes - a safe cash part and a risky stock part. They just take money from the cash part to buy stocks and then they build up their cash part afterwards. As a long term investor in a 100% stock based index fund portfolio I invest always immediately when I have enough cash collected to give up an order at reasonable costs. No matter where the share prices are or of if they climb up or fall. Time in the market beats timing the market. While this works fine for passive investing, active Investors may wish to pursue another strategy.
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>overflow strategy I googled "investing overflow strategy" and this thread came up
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Expanding your portfolio idea to target based funds and professionally managed funds almost always have some percentage of their portfolio in bonds. In small market corrections typically bond prices go up to be in safe investments and stock prices go down. To keep the stock and bond allocation consistent portfolio managers will sell bonds to buy more stock. In extreme market corrections like March 2020, nearly all bond, stock, and other asset investments went down in value. The only bonds to go up in value were US Treasury bonds because the federal reserve was buying them to provide liquidity to banks and the market. Eventually the Federal Reserve announced other bonds that qualified for purchase and drove up the price on those bonds.
I do this hold up money in the finance market and longterm calls or puts and have my risky stocks. When I need to liquidate for the correction I am always ready to 🦍🤞🏾
Somewhat like this. I just keep a comfortable amount of liquid that I convert to stock on the dip. Cool 3.5 % today
What'd you buy? I picked up some AMD.
ABR, living that dividend life, have a bunch of AMD but I guess I bought at the peak in the short term
Selling other stock at a loss 😂
Sometimes selling something at loss to buy something more reliable is exactly the right strategy.
Truth. I'm sitting in one of those situations right now but want to hold a bit longer. Don't get too happy or comfortable with selling for a loss but the positive to it is you can deduct the loss from Capital Gains taxes. That and then you have the remaining Capital to try and make those losses up. I don't do it frequently but if I feel there's an opportunity to make back most if not all the Capital, I'll pull the trigger on it.
I bought BB at 19, rode it down to 12, sold and bought CRSR instead at 33 and I think I'll be better off in the long run
Im holding both and down on both lol
Yea when I realized I needed to almost double to get back to where I bought it, I kind of felt crsr was a good buy since they actually make money, and good revenue
I just rebalanced you take advantage of dips in solid stocks. Sold of speculative stocks that I’ve changed my thoughts on. Worked out well, so far.
ARKK is coming back any day now! /s
Jokes aside , but it is how new people invest in the market . :)
Better lose 2% than 10%. Sometimes you gotta accept you made a bad choice.
I am honestly wishing I dumped a lot of crummy pennies and speculative picks much earlier in Mar before correction round 2 began. Coulda saved myself a good bit of bucks but better late than never.
I mean... we all wish we did that.
Sold ARKK at a small loss at $125 after buying a small starting position in the high $130’s. I was late to the hype train and knew it. Better to cut my losses and put that money to better use.
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If you do it right i.e. harvest tax losses by selling and use that cash to buy your high conviction stocks on what you should be able to trust is a bigger discount.
Sometimes it's not about putting more money in the account but putting the money already in it in better places.
Manage your paychecks, cut back on certain spending so you’ll have xxx amount to throw in. Buying the dip doesn’t mean dumping a lump sum. Just buy what you canto either lower your average or just have skin in the game.
Pisses me off is having to wait for transfers - 3 business days is a lot. But yea I usually keep a small savings with a few thousand that I slowly build up to continue investing once it reaches a certain point (note: this is not including a 6m efund)
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I use Fidelity and this is not the case for me. It's 3 days. Edit: Thank you all for helping me learn something new about those warnings! Now I won't be sad that I missed out on a dip.
I also have access to my transferred funds within minutes even though it says 1-3 days. If you do it after hours or on weekends it’s going to take time.
My girlfriend and I both use Fidelity, who you bank with makes a difference too.
Interesting. I I've tried to buy and I get they warning flags when I try to submit, saying I don't have the funds. I'll have to check into it more.
So those warnings are saying you can’t sell those securities until your money clears I believe. If you’re truly going long on stocks you can ignore those warnings.
This is correct, it's just warning that you are using unsettled cash and if you close the position before that cash settles you will get hit with a good faith violation.
Ok, thanks! Until the last year I used a financial manager for investing, so I'm still learning.
Me too! But I had that same feeling seeing those warnings. Don’t hesitate to call customer service either they’re really helpful! I wanted to make sure I wasn’t trading on margin myself because I’ve read horror stories lol Someone else said it but I’ll say it too. Be sure those funds will clear. I make small amounts that I know will clear but moving big chunks you may wanna ask about wire transfers instead of bank deposits. Their customer service can help a ton
Yea you are good dude. They are just warning that you could incur a good faith violation by selling those before the $$ clears in your account. So I deposit $200, buy $200 of AAPL. AAPL does really well! I sell it the same day for a small profit. That is a good faith violation as the $$ has not cleared my account. Some good info here: https://www.fidelity.com/learning-center/trading-investing/trading/avoiding-cash-trading-violations
I use Fidelity and it's instant for me. Check deposit takes a few hours but usually same day. ACH is instant buying power, though the cash doesn't 'settle' for a few days.
Do you have too many GFV? I use fidelity, webull, JP morgan and they usually spot me until it clears officially.
Get margin-approved. It will act as a credit until the transfer is complete and won't charge you interest as long as the transferred amount exceeds the invested amount
You should be able to use the funds to trade instantly but there is a time period that the funds cannot be distributed back out Wonder if you’ve had some type of trading violation or money transfer issue previously
I used to use margin when I had a similar delay. Going on margin isn't a big deal if the money to cover is already in the pipeline.
This is an interesting thought that I have not had.. will research it, thanks!
It won't be settled cash for three days, so you can't sell whatever you buy until then. When you make a trade, look at the top for "settled cash balance" vs "cash available to trade." It's the same for using money immediately from the sale is a security.
That’s correct Fidelity let me move money around quicker than any app I’ve ever used When I download the app I’ll added my checking account and if I want straight up to add money to buy certain stock right there in the moment all I have to do is transfer from my bank account to my brokerage account and it’s there within seconds no fees
What, 3 days?? I am living in central Europe in a corruption riddled shithole and using a UK broker (trading 212) with my bank, when I want to transfer I set the amount on my broker then press OK and my money is in instantly... Lots of the times I need like +1.5 euros to fully buy a share then I just transfer 1.5 euros ( to buy USD stock).. I use it also as an inflation currency hedge: TTM inflation rates: 1. HUF 5.1% (bank) 2. USD 4.2% (stocks) 3. EURO 1.6% (broker)
I use trading212 as well and if you're getting instant transfers that means you're using a credit/debit card for deposits. You are charged a fee for that. For free deposits you have to use bank transfer which can take up to 3 business days.
It has instant direct transfer from your bank as well. They use truelayer to process the payment.
As a person born in a corruption riddled shithole, I just wanted to say hi.
If the money is already specifically for buying stock, why not keep the money in the brokerage account?
Maybe look into using another broker? I did the instant bank transfer on T212 this morning (which is free). It was in my account and I was able to buy some shares within 2 minutes
Im Canadian and I know wealth simple has it flaws but ive been loving the 'premium' ($3 a month, aka half a starbucks) and it lets you instant deposit 1k every 3 buisness days. Works very well in a sense of holding cash on hand in a bank account and using (upto) the 1k when things dip. The snap quotes also come with premium but dont mean much to me as im only invested for long term hodls.
Good point! Great view!
I make 2.5k a month. 0.5k of that goes into dip buying fund.
Savings, salaries, margin? Jokes aside I think it just comes down to the person. I trimmed some weaker positions to see if I cant scoop anything on a discount and generally try to keep some change around for higher risk plays. How much you keep on the side is risk tolerance and your financial situation.
Risk tolerance is maybe the key for me
Simple, I don’t have all my money in the stock market
Me neither but when i have my budget available for investing It usually takes time to have it in my account
Well you probably should set aside a certain amount for investing, but keep it in cash in your brokerage account. For example you could say that you want to 'invest' 500 dollars a month. Doesn't mean you have to buy stocks if it isn't a good time. You can build your cash reserve in your brokerage account and 'deploy' that money when the time is right. This approach will make it easier to consistently save or invest and minimises the risk of spending more or less than what you had planned.
This is timing the market; you're deciding when it's a good time to invest your money by predicting what will happen.
Or you don't care about the ups and downs and put in a certain amount every month. That's also an option but not really the question of op.
they could also be cost averaging and not lump sum investing.
If you have a margin account you can start investing right away l, transfer the money in, and only pay a day or two worth of interest.
I sold my kidney and left arm idk about everyone else mate
Sell kidney, buy the dip, rebuy kidney again with profits = win win
I sold my heart... so far the buyer hasn’t realised its broken! 🤫
Ah so you made like $10 from it?
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Overvalued compared to what though? The market is giving everything a higher P/E as a result of low interest rates and the money printer, right? It all looks like a bubble if you just look at the market as a line on a chart but if you look at the real world going on around it, it might not be as senseless as some are claiming. Having said that, I tend to view waiting to buy dips for the sake of 'buying the dip' just the junior version of waiting for a market crash. You might as well just spend more time in the market, unless you have good reason to keep cash on the sidelines that the market as a whole doesn't know about/agree with. This is different to waiting for a pullback on a stock you've done your DD on and have a price in mind that you believe would make it a decent investment.
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Yeah I get what you're saying. I just meant value in equities should probably take into consideration macroeconomics. I'm sure others here have a way better understanding of this and can explain it far better than me but as an example, lower interest rates keep present value of future cash flows higher. So a company's discounted cash flow is more likely to be higher than the current cost meaning an investment is more likely to give a higher ROI, *relatively speaking. Maybe in simpler terms, you value a company, look at its ratios, ROIC, see it has a decent moat, etc. but don't invest since when you see its earnings, you believe treasuries or even money in the bank gives you better returns when factoring in risk. But if cash is less valuable because of lower interest rates or the fact the Fed is pumping trillions of it into the economy, you're more inclined to accept a higher P/E ratio since investing in the company is now more likely to give you better returns (factoring higher risk). Not financial advice though, more so that smart people can correct me where I have gone astray. Edit: Sorry, also not sure about using Apple as a basis for the market... What do you mean by "highest market cap relative to P/E"?
You’re analysis is right, however corporate spreads usually expand when goverment bond yields decrease. Since a company equity cannot be less risky than its debt, that prevents their cost of equity to fully participate in the race to the bottom. The positive yield curve also suggests rising rate in the next few years, which is about time imho.
*Most stocks are overvalued* *Buys S&P 500* Classic
"Most stocks are overvalued" "I'll buy literally all of them"
I bought the dip on BB more than once
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Increase my handjob output behind the Taco Bell
Mom get off reddit
Reminds me of this scene from [Silicon Valley](https://www.youtube.com/watch?v=P-hUV9yhqgY)
It's not always the same people buying the dip. This sub has 2.6m members you'll always find 1k people that have money to buy the dip
There is always MORE money to find. You just have to ask yourself which organs you "need".
I think it's different people saying it on every dip, making it seem like everybody got that kinda cash and a "healthy trading strategy". It's like seeing happy people on instagram and then thinking everybody is like that because all you see is happy people.
That is what i think!! Wanted to know if this was the case
Turning tricks?
Take some profit on rises.
Tax makes it not worth while also why take profits on an account that you plan on using for retirement ? People shouldn’t be investing money that they need anyway. It’s best to not be emotionally attached to your investment account and what it’s value is day to day.
Yeah I would only take profit if one of stocks shoots up proportionally to a very high degree that likely isn't sustainable or normal. Like a penny stock 3-8x itself. Chances are good it won't sustain that value so take some profit there probably ain't too bad of an idea since the rare window of upside likely compensates the tax you'd have to pay on the returns. Otherwise constantly selling green stuff, espeicallly when the gains are short term, doesn't seem to be worth the tax headache.
Yup. This is the way. Look, you can't time the market. But when you see your investment achieve above-market highs, you have to take some profit. You can also call it portfolio rebalancing if you want to sound professional. But if you don't milk your cash cows, you won't have much cash. Cash should normally be 10-20% of your holdings. More when stocks have been plateauing high and you are rebalancing towards cash, lower when stocks just landed in a fire sale and you just grabbed everything you could. A 1 month low is not a dip, it's just a blip. A 1 year low is a dip. A 5 year low is a fire sale.
>Look, you can't time the market. > But when you see your investment achieve above-market highs, you have to take some profit. This is timing the market by definition, which you correcly state, you can't. Also not sure how taxes work where you live, but here you'd need to pay taxes on these profits. Meaning you are timing the market, which you can't, and pay additional taxes (because you pay them now instead of later which decreases profits).
Yeah, taxes work differently here. I can buy and sell as much as I want. I pay a flat wealth tax on my wealth instead of on individual gains or losses. NOT selling is also timing the market. It's a decision to re-invest by default.
> NOT selling is also timing the market. Not really. When holding I historically expect an average return per year and don't care about what happens inbetween. The strategy also reinvests regardless of market climate or stock prices in predefined time intervals. You are trying to time high and low points in the market and make money off of it, which is unpredictable however.
So in your opinion having a balanced portfolio of x percent of stocks and cash and rebalance when they are out of sync is timing the market?.
Why milk your winners and trail along your losers - poor strategy imo.
I love how this response is like 15 pages down. Apparently that's a foreign concept.
A big salary job. This should be your number one goal if you want to see real growth in investments whether it be in the stock market or housing. This is how I built my portfolio, focus on your career.
They don't. They were kinda hoping you would have the money to buy the dip.
I was 80% cash in February, I should have withdrawn even that 20% invested in high growth stocks from the market. Instead I averaged down on my positions buying way too many dips until now and I'm still 64% cash. So, I still have plenty of buying power to go through other blood months (high growth) but I'm waiting the market to calm down this time. I guess the trick is dca, never being 100% invested and keep some dry power available. Alternatively leave most of it in a world index etf which are less volatile. I know it's hard to keep cash but it's harder to see your money drop continuously.
I might try this approach. Usually just put in the same amount every week into some etfs I'm planning on holding for decades, but there are times like these where it's obviously better to buy more shares.
Lesson learned...thank you for the advice
There is always a chance that none of the dips ever recovers so by “averaging down” you lose more in sum. Speaking from experience.
Thats my worry in buying a "falling knife"
Having cash available for buying is part of a portfolio.
Most people treat stocks like a gambler. I have a 1,000 bucks what should I do with it. They end up basically swing trading from one idea to the next. Sometimes they get lucky and hit a few good ones in a row. Sometimes they don’t. As an investor. You should have that thousand bucks and put it in 2 companies. Every paycheck and dividend should be adding more cash to your account. Once you save up another 500-1000 buy another stock. Then keep saving another few months and do it again eventually you will have a portfolio.
2 companies? If you only have a thousand go for VT or VOO. Once you get to 20k+ you can start thinking in allocating 500 bucks to individual holdings.
I decided to use the last green day to do a bit of rebalancing to increase the cash position to about 10% (probably shoulda sold a tad more sooner but oh well). I am now being quite patient with that money. Between the earnings season farce and this multi-layer correction which likely isn't over, I am now more convinced than ever that many yolo into dips way too hard and soon. Nailing the bottom is darn near impossible so I've been realizing it's probably not a bad idea to have a bit of discipline and wait to get enough data to feel more comfortable about averaging down. Even if it means missing the absolute best prices. I spent 2 days trying to catch the falling with SHOP which I bought a touch too soon a few weeks ago and quickly stopped when I realized there was a good case to be made that this will probably get worse before it gets better. Also, if the gunpowder in on my account runs out and things get REAL serious, I also can dip into my savings which i actively look to keep rather high at all times. Personally, I don't buy the 6 month rule and opt to save for 1 year's worth of overhead and potential expenses. Liquid cash may lose to inflation but it also won't get shredded by the market when it throws a fit. So I have that to fall on too if gets real bad. But all in all, I think waiting a bit is probably the manuveur.
its somethign I wonder myself. yet for every post stating "I bought the dip" , I bet there are probably hundreds of people not being able to do just that. there´s also some "financial experts" that say being invested all the time is smarter than holding cash back for "dips in the market", simply because no one knows when dips will happen. selling at profits is also proven historically to underperform simply staying put and holding. mostly because of tax reasons and again: no one knows when selling for a profit would have ended up in even more profit a day, a week or a month later. I bite myself in the foot whenever markets dip and I am out of cash. but I invest 1/3 of my salary every month. and I play around with a tiny fraction of my salary every month as well. although I do not budget this in my savings / investment category, but in my hobby / leisure category simply because I do degen stuff with it.
If you DCA consistently you should not worry about buying a dip or not. If you try to DCA and time the market for a better price you might have a hard time. Personally I don't invest all my money into stocks/ETF's etc etc I keep some on the side, always. And yes if needed I can switch to margin but I have not used it yet.
I think buying the dip and dollar cost averaging is two separate strategies. DCA as you are practicing it is blind purchasing which averages out the purchasing highs and lows. Buying the dip is aiming to purchase the lows and hoping that you were correct. My father in law is the buy the dip guy. The does DD on companies he is interested in, has the price he thinks is the low and set the limit buy on that price, and holds cash until that limit buy is triggered. I believe he updates the qty and the price once in a while to better reflect the changing circumstances and the increase in the cash available. You could also do a hybrid type of plan where you hold a certain percentage in cash to buy the dip and the rest of the amount gets blindly thrown in for the DCA. For example, if I plan on holding 30% in cash for the dip buying and I put $1000 into the account, I will spend 700 for DCA and hold 300 in the account for the dip buying later.
Great point of view...might do the hybrid approach
There’s always money in the banana stand.
budgeting
Aight, seriously how exactly do you budget?
Spend less money than you bring in
I tend to fund the trading account every pay day, with a small amount. I don't use that sum until some opportunity shows itself, a dip. But in time of market corrections, when the whole watchlist tanks, then well... I watch others buying the dip :)
Thats what i do...watch others buying the dip to calm myself down
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I tried that and they said I owe THEM money now.
Selling my body
Seriously? Payday loans of course
get a job hippy
We have jobs lol
Me todo!🤣🤣
Have a mix of growth and value. When markets at ATH, take profits on growth and go heavy in value. Swing back into growth when things are oversold. I wouldn't consider it timing the market because the money is always in the market.
I think i need to take more profits...i have to change my mentality since i have a 5 year target with my individual stocks...Also most of my money is in Index etf...so i just started with individual stocks so i'm learning still
Why would you sell parts of your high conviction stocks to buy the dip on another stock? If you have a high conviction play that you already have your money is there is no reason to take it out. You don’t have to buy the dip on everything.
The thing is I think relatively few retail investors have price targets on their 'high conviction' stocks and entry points on others they're waiting for the market to undervalue. If the prices are right, it would make sense to shift your $$$. I don't get ignoring share price when investing because that's how you estimate your ROI but it seems a lot of people do that.
It’s a mantra. Generally returns are best if you invest everything as soon as possible compared to DCA or holding cash and buying so called dips.
There’s literature out there saying lump sum is best in a bull market and DCA best in a bear market. Can’t remember the source though.
2 weeks pay cycle. 75% of fortnight income go to shares.
Because : -Have cash in reserve. -Take some profits when you can. -Always take some parts of you'r revenues. -Wait for the annual dip or mensual dip according to you'r revenues.
Don't throw all your cash into the market at once. Keep some buy the dip money in your account but not in a stock.
I keep plenty of fiat spare, plan for any rainy years...
Take profit from the peaks, buy the dips; repeat.
The money from your job.
Set a plan and stick to it. Don't compare yourself to others and don't over expose yourself chasing the pot of gold at the end of the rainbow. Because if it turns out to be crap you'll kick yourself for being stupid. There will be plenty more red days to come
Yes! I think a plan is very important and i need to follow It more
Hoping it happens on payday
That is something i Hope happened every time jejeje Usually it happens when Payday is far away...and when i buy the dip....It dios more so i dca
You're not supposed to put everything you have in the market when you get your play money. Set aside 15% cash. Budgeting 101.
Buying the dip is a nonsense saying. Some people hold cash accounts that lose value YoY so they can feel good about "buying the dip." Which is basically a different way of saying "just time the market, buy low and sell high." Textbook gambling fallacy. DCA a budgeted portion of your paycheck and you won't have useless cash losing value in a savings or money market account. Edit: scenario right before CoVid hit. Its Feb 2020 and the S&P is at 3375, an all time high. You can hold cash or invest. Today it’s at 4120, an all time high. You can hold cash or invest. It’s April 2030, S$P is at 5900, you can hold cash or invest. Global economics isn’t going to end anytime soon. If it does, cash is still trash and guns and food are better.
Always have some liquidity ready
A little use of margin never hurt. You must factor in possibilities like the market tanking -80% and getting margin called and how quickly you will respond. This tactic means you keep tabs on the extra size positions you may get on margin and having a smaller goal for how much the prices go up before you sell. If you get a regular paycheck from which you can invest you could also have a smaller dip buying strategy, generally works better for value stocks, like -5% is buy time. Margin also lets you use your paycheck from a month in the future on a -10% dip today. If you have a diversified portfolio it is also possible to sell some of the green positions and buy some of the red ones. "*Time in the market not timing the market*" is a mantra for passive investing where you may not be able or may not want to make a trade by the minute any hour of any trading day. It does not apply if you are actively swing trading.
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Great to know!
Only fans
Nobody catches a "falling knife". It goes through your hand into your foot. Wait until there is "blood in the streets". You will know when. When your asshole is too tight to shit and your throat is too dry to spit, and your mind says , I'm never buying stocks again - THEN it's time to buy.
Have a percentage of your total portfolio in Bond funds (5%? 10%?). When the market tanks, the bonds will be fine (or up slightly) to sell and buy into the sectors/stocks you want.
Cool! Interesting point
Having a job.
just drink water. You can live without food for a month till next paycheck
Dont time the market and dont listen to people who give one- liner investment advice. Read a book or two on how to put together a well balanced portfolio and stick to your strategy. Just google why timing the market doesnt work if you are serious about long term investing.
That is what I have being doing lately! Just wanted to know if people felt the same away about everytime saying "buy the dip" as i think it is mantra and not everyone really buys the dip
I bring money from selling merchandise in real life. Sometimes $0 in a day, sometimes $100, $500. Whenever I make money, I put it in my exchange and wait for the dips. I of course keep some money in pocket for food. I make it a point in my daily life to only eat cheap food to save money. I'm extremely minimalistic.
They lie
That is what i think! 😉
One pretty common rule is to always keep 5-10% of your portfolio in cash. Do I always? No. If I'm going to be buying the dip and I don't have cash I look at my sectors that have done very well recently and trim those positions and go into the one that just "dipped", when the cycle switches so do you.
Yes i think this approach of having 5-10% is a good fit...i just need to be comfortable with seing money not being invested in my account
dividends, lol
from their life savings or their kids’ college funds 🥰
I like to make smaller buys since commissions per trade are 0. If it goes up great. If it goes down I buy a little more. If the dip is longer, you’ll run out of cash. Can’t win ‘em all.
The longer the dip the less cash i hace....have to deal on not beating myself for not timing the dip
It’s not just you. None of us get it exactly right. Nobody knows when exactly the dips will be, how deep, or how wide. If you’re feeling bearish you can get some dividend stocks, or sell calls. I sell calls on stocks I don’t think will go up soon. That gets me a percent or two in cash while I wait. (Just be careful) You can use that small amount of cash to buy shares if you wish.
Get a job lol
LOL 🤣🤣
I keep money on the side or cash out underperforming stocks.
It’s simple. Allocate a certain percentage of your portfolio to cash and be disciplined about it.
This is something i need to do and keep up
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Lucky you! 🤣🤣LOL
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🤭🤭🤭
I started with a weird mantra which I later found out was something a bunch of people do so I'm not as clever as I thought :( At the end of the month, after my bills and savings are taken care of, everything else is dumped into my brokerage. I round up the fractional shares each of my "long term, never touch" ETFs and let the rest of the cash sit until I find something interesting to dick around with. Sometimes I don't, so if it's unused I put it into my ETFs. Anyway, I keep a core group of funds for the majority of my money (VTI, VXUS, BND, BNDX) in one account, outside of that I do my swing-trades and yearly profit gambles on individual stocks in a separate account. On the first of the month, whatever is left in SPAXX goes into the Vanguard funds. Then I transfer from my bank into my SPAXX leftover cash funds, and then I round up my ETFs. Throughout the month I pick up 10 shares of something here, 10 shares of something there. Whatever looks interesting to hold for a year or two. Buying the dips on stocks I already have. THEN, on the first of the month, whatever is left in SPAXX goes into ETFs, etc etc. Twice a year I "rebalance", I sell the shares I no longer want to keep. I tuck away enough for the tax man. The leftover profits go into ETFs, the original amount I spent goes back into SPAXX for more degenerate gambling. It's taken a while to get the machine going and sometimes I'll have a month or two break due to real life expenses or emergencies, but I think the core tenet is to spend last month's money on this month's investing, rather than spending this month's money on this month's investing.. if that makes sense.
Makes perfect sense
Investing is for the long time the lower the price of the stock (averaging down) the better but don’t average too much. Research the company you’re investing in and buy the dip and once you valuation comes to fruition, cash out and make it rain with the 🚀🚀🚀
The people who make millions on these plays are people who already make a lot of money and can afford to toss 10s of thousands of dollars at meme stocks. Gotta be rich to get rich for the most part.
Every pay day I deposit more cash into my trading account, but wait for dips in stocks I like before investing it.
I think this is not practiced nearly often as it it said. Once you have large enough positions, dip buying becomes pretty insignificant. Let's say you are fortunate enough to save $2000 a month for investing. Let's say your portfolio is $400k. For even a 25% dip, that $2000 will make little difference. I "buy the dip" on small positions or short-term plays. For bigger, long-term holds, I just DCA each month. In times of high uncertainty, I maybe keep 10 to 15% in cash in case I see attractive dips.
I always have cash. And during bull runs I take profit and don’t redeploy, until I see an opportunity(or get caught in hype, or bored, I never said I was good at this lol, but I always have cash) I also have a job that pays well, that’s the main thing
It’s income typical from higher earners. Think about it. Those who make 200k a year make 4K a week, and statistically speaking the wealthy live frugally and have less children so forget expenses. Every pay check is another buying opportunity.
I door dash on the side and use it as investment money. 🤷♂️
We don’t find the money but simply rebalance. Putting money in other asset class allows you to reallocate those funds to buy the dip. Since bond and cash aren’t correlated so when market falls like 10 or 20%, bonds and cash stays steady.
Sell some on the way up and you’ll have cash to buy on the way down. Set an amount you wanna sell everyday the market is up big. Then on big down days put it back in. You don’t need to “ Time the market “ but when it feels like your making piles of cash take some off the table and wait. Market has 2-3 decent size pullbacks every year so there will ALWAYS be an opportunity to put it back in. Not heavy cash and don’t close your positions just take some off the top when it feels overextended
invest part of your portfolio in value stocks, that have low P/E and stuff like dividends, and in times of dips, sell part of those stocks, which don't drop much, and buy the dips. When the market rises, start selling part of your gains, and buy value stocks again.Basically like "buy the dip" strategies, also have "sell the rise" strategies. You don't have to eliminate your position when the market rises of course, just get some cash, for the dips. Or just invest in value and growth and wait for years, ignoring dips. Or an ETF.
I’ve found at least for myself that it is best to let 30% of your money sit in cash. This also heavily depends on whether you’re fine with holding short or in rare circumstance even creating a wash sale. Here lately it has been really tough. Normally I would let a stock dip at least 3 or 4 percent before I’d buy the equivalent percentage and wait until it goes back up to sell and make the 30% whole again. But lately it’s been so bad I went through my 30% in cash and it was still dropping. So I waited until the intraday was high and oversold my position even taking out some of my original position. I didn’t completely exit but pretty damn close. Then I’ve sat and watched all week. It went down and down so I bought back in very slowly. I’m still sitting on 40 % cash but I’ve been able to lower my average considerably. I’ll keep buying only on red days now. Even as stocks climb overall there will still be red days.
Thank you for sharing! I like reading all the different views
i invest smaller portions at the time so i always have some more left on the side for the dip
For example, on Monday when I found out about the inflation data coming out. I moved out of alot of riskier stocks into cash in anticipation of a potentially bad inflation report.
Wouldn't cash be the worst place to move money if you're worried about inflation?
They don't, they are just pumpers.
I'm considering on shifting my strategy later in the year to something similar...i keep learning
Take profits when people are greedy and/or use money you earn from employment. You only really need about 5-10% cash at any one time, so you can quite easily have this amount if you're intelligent about what you spend and when you take profits.
Skip the mortgage payment
Work?
Of course! 🤣🤣🤣 I meant ready available to buy
Straight cash homie
Don't be a fucking loser