Boiler Room: The Official Stock Market Discussion

ahomeplateslugger

ahomeplateslugger

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winb83 said:
It is not a good idea to try and time the market. Buy into it slowly over time. Take a fixed amount like $100 a week and average in.
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Averaging down often like that is ok if you're investing in an index fund. I personally don't like doing that with a company. A lot of ppl get burned buying a company at its high and keep averaging down only for the stock to continue to drop and never recover. If ppl don't do their DD than they should invest in the S&P 500. If you missed the boat on a stock then just look for another cheap (in terms of multiple) stock.

I give the advice to wait because the market is in a downtrend with a Black swan. News about the Corona virus spreading can cause the market to drop more so no point in catching a falling knife.
 
winb83

winb83

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ahomeplateslugger said:
Averaging down often like that is ok if you're investing in an index fund. I personally don't like doing that with a company. A lot of ppl get burned buying a company at its high and keep averaging down only for the stock to continue to drop and never recover. If ppl don't do their DD than they should invest in the S&P 500. If you missed the boat on a stock then just look for another cheap (in terms of multiple) stock.

I give the advice to wait because the market is in a downtrend with a Black swan. News about the Corona virus spreading can cause the market to drop more so no point in catching a falling knife.
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If you're looking into the company and doing due diligence then if the company is undervalued buy it. People in stocks get obsessed with trying to get the best price. You can't unless you have inside knowledge. Apple isn't undervalued right now so don't buy it for example but maybe you look into Boeing at $275 and feel it is undervalued. I'd start buying it slowly over time. Maybe a share a week or whatever just so I'm not tossing all that money in at once.

The market could get worse, it could get better. We really don't know so it's not a good idea to let a lack of knowledge paralyze you into total inaction while you wait for something completely undefined. Good companies will recover.
 
winb83

winb83

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I might have to tune out the market for a while. I've tapped out all my funds I'm willing to invest and seeing all these stocks down so much has me looking at stocks I can now sell to move into positions I find more intriguing. I almost sold out of McDonald's Friday to buy into 3M. I already sold all my shares of VOO (only had 3) and put that into Uber and Exxonmobil.
 
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