Lootman wrote:formoverfunction wrote:Especially if you are a value investor, it some times takes me months if not years to get a stock I want at the price I want. The benefits can be excellent, but the frustration! Oh, the frustration of it!
Much of the time you may never get to buy that share. You may be fine about that, of course. But it's something of a joke around these parts that those who were waiting for Vodafone to drop to one pound ended up never owning it. Whilst those who bought it anyway did quite well when Verizon did their deal.
Scaling on the way down is all well and good as long as you have unlimited funds. Doing that with financial shares after 2007 would have been an unmitigated disaster.
Sometimes what is needed is not patience but rather an admission that you were wrong, cut your losses and move on.
"Doing that with financial shares after 2007 would have been an unmitigated disaster"
I didn't, but I went in heavy in 2009/10 - that £100k turned roughtly into £500k now I guess - and again just before the brexit vote. You can't be driven by one single strategy afterall. Sometime you just have to get out or go for it.
As far as unlimted funds, I'm not at the point that, but I now only invest dividend income, and roughly every 4 months I generate enough to take a full position. If there isn't something I want, I look at near cash alternatives or just hold the cash.
You of course have to recognise when you are wrong and cut your loses. That's easier if you've only scaled in, not gone in full throttle. I'm afraid that's a thing I try to do only when I'm totally convinced and there's a complete and total market correction. When everything looks pained.
Yes, your are correct, sometime you never get to but a share at the price you want, and that's absolutley not a problem at all. Why should it be? If the market has a different opion, that's fine.There's not a lack of things to invest in after all.
Things don't always work out, I'm down alot on Standard Chartedand & latin am IT's, but that's OK. The latter at least throws out a decent little div stream and you've never know there might be a point with STAN that I'll be happy to average down.
There's just no need to rush in my mind ever if your a private investor and increasingly in our interconnected world, it feels like we'll get really "go for it days'' until one of those appears, I'm more than happy to take the slow lane.