Does this mean your ammunition is deployed based on how much STI falls? The other method is just to spread out over a period of time. Or combine both of above.
"HOW MUCH IS ENOUGH" "There are many different and contrasting views about whether it is better to invest a little and often, or invest larger sums occasionally. I think you should aim to do both differentially base on the state of the market at any given point. Once again, it is a matter for your personal judgment. Nobody can tell you or predict how you should behave in this context. Investing a little and often means that you limit your exposure to market fluctuations and therefore you manage risk. Investing aggressively when a special opportunity arises, such as Harley Davidson example, makes sense, so that the more you take advantage of a situation like that, the more your returns are likely to be if you get it right. So, in summary, invest a little and often, and invest heavily rarely and intelligently. Taking both approaches is the most likely to provide you with the best returns overall and in the long run".
NB: The author invested very heavily in Harley Davison during the 2009 blood-bath in NYSE. i think he had waited for 4 or 5 years. Almost unbelievable patience/guts and a "little bit of luck or blessings and skill in understanding the market" depending on your belief. Read the book and you may have your own interpretation. If so, may you share with all who blog here. Cheers!
Does this mean your ammunition is deployed based on how much STI falls?
ReplyDeleteThe other method is just to spread out over a period of time.
Or combine both of above.
Use STI levels as patience benchmarking. Buy slowly. Sell slowly.
ReplyDeleteHi,
ReplyDeleteHow about this practice from Jamie E. Smith.
"HOW MUCH IS ENOUGH"
"There are many different and contrasting views about whether it is better to invest a little and often, or invest larger sums occasionally. I think you should aim to do both differentially base on the state of the market at any given point. Once again, it is a matter for your personal judgment. Nobody can tell you or predict how you should behave in this context.
Investing a little and often means that you limit your exposure to market fluctuations and therefore you manage risk. Investing aggressively when a special opportunity arises, such as Harley Davidson example, makes sense, so that the more you take advantage of a situation like that, the more your returns are likely to be if you get it right. So, in summary, invest a little and often, and invest heavily rarely and intelligently. Taking both approaches is the most likely to provide you with the best returns overall and in the long run".
NB:
The author invested very heavily in Harley Davison during the 2009 blood-bath in NYSE.
i think he had waited for 4 or 5 years. Almost unbelievable patience/guts and a "little bit of luck or blessings and skill in understanding the market" depending on your belief.
Read the book and you may have your own interpretation. If so, may you share with all who blog here.
Cheers!