Today's market action is PRECISELY what I was talking about when I said you buy whenever you think or you can.
I bought that ETP when everyone was scared this morning - 5000 shares at $55.40 using a limit order... and now a few hours later they're trading at $58+
My first couple buys were too early. Okay - no biggie. I'll scale into the position and move my average cost closer to where it's trading. Might trade lower than my cost basis - but I'll move that direction in a down market. Ditto in an up market. If I was early and got some shares of "X" at $50 - and more at $55... and some more at $62.50.... I'm OKAY with paying up for them. WTF! The share are just doing what I hoped they'd do -- which is to go higher. Why would I then be afraid to buy more? Because it might go down? It might also go higher yet!! I can't ever tell so why get my panties in a knot over it. Do I want to own shares in the company or not. That's my more important question.
Am I smart? No. Lucky? Sometimes. But truthfully - it's more that I'm not afraid. I don't panic and sell - and I love to buy when everyone hates everything. You build calluses on your nerves. You look at your overall situation and think to yourself... "I'm in good shape"... "what does the income look like on the trade"... "are they going to go broke next year?"... "am I okay if it goes lower?".
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