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MD
Monday Dayton
@mondaydayton · May 30

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. 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.

A community member's personal view, not investment advice. Community Guidelines

NI
Naveed Iqbal @naveediqbal May 31

hmm

AY
Alden Yap @aldenyap May 30

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... 😁

MD
Monday Dayton @mondaydayton May 30

Agreed, so what the heck, but I also want to hold some stocks well into retirement. 100% is not enough for retirement. 👍😁 I have yet to gain that trading experience. So you're looking more at resistances, support, some cyclicality for example when it's over a longer period, but you don't look much at the news around the company as such?

BC
Bill Combs @billcombs May 30

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.

MD
Monday Dayton @mondaydayton May 30

That's what I'm trying to do too, that's why I'm glad what a slump last year was, it's just a shame I didn't have more capital. Right now there's not much on big tech right now I find, all high, so I'm just buying reits, so hopefully I won't miss the "train" in big tech.

AG
Alfred Gray @alfredgray May 30

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 😁

MD
Monday Dayton @mondaydayton May 30

Jasan I understand, I avoid ATH too, but sometimes it just kind of gets away from me when it goes on and on you know. But as you say, there's always a correction on everything, it's probably just about being patient and waiting it out. Otherwise, I enjoy the trade too, just don't have that much time for it yet, but hopefully that will change in the future.

K
Kris @kris1 May 30

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.

MD
Monday Dayton @mondaydayton May 30

But is that still DCA?

AA
Ashraf Aboudar @ashraf_dd May 30

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.

MD
Monday Dayton @mondaydayton May 30

I see. Thanks for the opinion and how do you view the prices that are now in the big ones? Do you have them as DCA or are you waiting for lower prices?

JB
Jason Bellier @neostonks May 30

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.

MD
Monday Dayton @mondaydayton May 30

Yeah, I get it. I'll admit that for me specifically it's harder because I didn't have much of a strategy to begin with, I just wanted to invest because it made more sense to me than having money in the bank. Over time it became a hobby and a deeper meaning. And now, I just sometimes hesitate on positions where I have a nice low purchase price and profits, while at the same time calculating that I will hold the company for years to come and believe in its growth. As you say, if one has that thought, I guess why not, buy continuously on and then sell and collect profits as well. Thanks😊 Do you have any companies where you do that?

AM
Ayesha Mehmood @ayeshamehmood May 30

You Too

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