Have a nice day investors! I am interested in your overbought strategy. 😊
I know that probably the "best" and recommended method for beginners is DCA (dollar-cost averaging). Of course, I'll give you an example. For example, we have a company you like like $AAPL+3.7%. You started investing, you bought. Then maybe you caught a downturn, you bought in. Today, we're within a few % of your ATH, but you're averaging a much lower purchase price.
You look at this and you hesitate or you just have a clear goal, I buy once in a while no matter what the price is. (I'm getting back to the DCA thing) Because you know you're going to hold that company for maybe another 20 years and it's still going to perform.
hmm
I will join the others, when something grows like nVidia, Google, Microsoft so I wait and look for opportunities elsewhere... Otherwise I buy stocks that I want to hold for a few years maybe even decades. For retirement... So for me I only have one strategy and that is to overbuy when a good company goes down preferably on some strong support, or I use trading experience but on a 1D and 1W time frame... I don't do it just to have 100% I go after the numbers for early retirement... 100% is not enough for me... 😁
I usually buy on dips. However, if I haven't bought a quality company in a while, I'll buy it at a higher price. But I don't buy on ATH.
I personally never buy at ATH, but wait for either corrections or sell-offs, at the same time I have a long term portfolio based on dividend stocks. But since I'm a bit of a "shooter" I also hang around trades and shorter trades in general, which I enjoy perhaps even more 😁
DCA is cool for those that do not want to get too involved. I do it and respect it as a method. Price does become irrelevant with DCA but it is good to take profits once in a while to not lose focus of profit in the investment.
I also sometimes stop to DCA when the market is very bullish.
With DCA, I don't care where the price is currently, but I don't do that with titles like this. I'll buy there if the price comes to me and is below my fair and reasonable value.
It depends a lot on how you define it at the beginning. If it's in line with your vision and strategy that you would like to sell in a certain range, then I see no reason not to buy and different levels. Moreover, some people do it in such a way that as well as increasing the position, they also sell it in increments as the price rises or reaches the desired levels.
You Too