The Art of Nibbling

[Christine69420]

With some dry powder possibly coming in soon I have started thinking about how to buy some more shares in my favourite company.

Picking a company with great products, cash flow and prospects is a good start. And I know about one such company. And their shares are on sale right now!

But what are the best strategies when you start to nibble at a certain stock? Here are some ideas I googled up:


Investopedia talks about upturns vs dead cat bounces
The Dead Cat Bounce of Investing


And should we Dollar Cost Average or Value Average?
Choosing Between Dollar-Cost and Value Averaging


Nerdwallet thinks there is no time like the present for starting to buy:

“It’s very difficult to time when to get into the market, and so there’s no time like the present,” Wyrick says. “I wouldn’t go all-in at once, but I think waiting around to see what happens to the economy or what happens to the market in the next three, six or nine months in most cases ends up being a fool’s errand.”

Should I Buy Stocks Now Amid Such Uncertainty? - NerdWallet


Many recommends buying "when there is blood in the streets" - "even if the blood is your own".
The Motley Fool has an article about this:
Buy When There's Blood in the Streets | The Motley Fool


What are your strategies for when to start buying - and for how much of your money how fast?

 

[Christine69420]

There is another strategy I've talked to friends about - to wait until the price reaches the/a bottom - and to go up again by a certain percentage or dollar amount - before starting to buy.

On one hand you avoid buying to high if the price has yet a long way to go.

On the other one you won't buy at the absolute bottom. But I think the odds of finding the bottom is pretty low anyway.

So I'm thinking this might be what I'll do.

But then I haven't any dry powder right now and it may be a few weeks before I do. And anything can happen in the meantime.

 

[CLK350]

I'd say it's a great time to read (or re-read if you never have) Jesse Livermore's Reminiscences of a Stock Operator.

 

[Christine69420]

With some dry powder possibly coming in soon

The funds arrived today so I have just bought a few. In case $101 was the bottom.

But I have not decided properly on when to nibble. What are your strategies?

 

[CLK350]

101 WAS the bottom...
I'd put in a conditional order at maybe 120 ..room for volatility till Friday which should end around 135

 

[CLK350]

101 WAS the bottom...
I'd put in a conditional order at maybe 120 ..room for volatility till Friday which should end around 135

Jesse (not I) would have noted the unusual strength that day and revised his 120 number. Actually since Monday was closed for the markets, the MMD happened Wednesday.
Today, Friday with options expiry and TSLA still showing strength plus Earnings day coming son (the 25 AH), all bets are off - as to what the SP will do /what the hedgies will manip, wall bets are off.

What would Jesse do? - hint: he wasn't a long term hodler

 

[Christine69420]

Not a a strategy as such - but if we get the standard post ER pushdown I might nibble again...

 

[CLK350]

Not financial advice. But in your shoes I'd stop trying to time the market. Except one last time, buy all you can before Fri close at under 160

I can't do anything, already loaded AND no more easy way to raise cash.