Let’s say you get an unexpected chunk of money. Do you:
A) save it for a dip
B) buy whatever is currently dipping
C) split it between the bottom 2/3 of your holdings
D) something else?
Right now I do C, since most of my brokerage account is blue chip growth stocks, I don’t pay as much attention to weight and more about getting them filled out. Just curious how people approach this.
Thank you!
Posted by This_Guy_Slaps
20 Comments
dollar cost average over an interval that makes sense for the amount. i use new money to try and keep my profile even weighted. in practice it means not buying anything that is up.
A
I go into a new position with conviction. 50% of what I want to invest goes in when I pull the trigger. I then invest the rest in tranches when I think it makes sense. Big dips, consolidation periods
C)
I’m down 30% and buying dips on the stocks I hold
B) unless it’s skewing my portfolio’s balance. Right now I’m running up into that issue with MSFT where it’s a significant percentage of my portfolio but the dip is also tempting.
Wait for the dip to turn into an uptrend then split up my buy ins over a few days or weeks (like a fast DCA)
Buy CRWV. Sell when it pops then buy again when it is down
90-day limit buys and sells: I calculate what I believe the stock to be worth and then go up 15-20% for sales, and down 15-20% for buys. Once a limit is hit (or misses after 90 days) I reevaluate and put in another limit order.
I keep a good amount of cash in hand (earning interest) and trade small-increment positions. If the market goes down a lot, my cash shrinks as I gain positions. Let’s just say I have a LOT (60%) of cash right now, lol, since the market has been so hot for so long.
I buy high and sell low
I was early
I invest about 25% of it right away, and then the other 75% I place limit orders to buy the dips and also set up either weekly or monthly automatic purchases for an ETF or two
Put a majority in $VOO, lump sum or DCA, really doesn’t matter a whole bunch in long run. If you feel market is hot or volatile then dca. You can leave 10-30% for individuals if you wanna be risky
Dart board /s
vibes
No gas left in the tank to buy the dip
C is a good way to make money disappear as companies fold. It’s necessary to reassess each investment before we average down.
I read a few annual reports every week, and when I find a company I like, I buy 100 shares. Additional capital then slowly accumulates from new savings, interest, and dividends.
I don’t look for dips to buy, or have a set plan to invest a certain amount of money every year. I keep reading reports, and enough cash around so that investing remains a low stress activity.
Best of luck to you.
Every 2 weeks into index funds for 15-30 years
I tend to dollar-cost average it in over a few weeks to smooth out the price, rather than trying to time anything perfectly.
Do you find that method keeps you from regretting any big purchases later on?
Every two weeks no matter what