I am an investor by and large, so I have recently started to build longer-term positions. My strategy is to nibble. But note that I have only been buying in lots of 1/5 - 1/10 of my full position. That means I am expecting to make five to ten buys to fulfill my position size. And, that also means I expect the stock to fall some more. How much more I don't know. But, my scales can be really wide. I'm not trying to time the market's bottom, but there are some strong companies that I want to own and believe will be stronger when we come out of this financial maelstrom. Fundamentals, in the end, matter.
When the smoke clears, growth and earnings will count again. Find companies that are strong in both areas and you will be rewarded. Obviously, seeing red marks day after day on your screen doesn't help your psychology, but having stamina and determination today is important. The forced liquidations will stop one day, the volatility will die down, the negative sentiment will turnaround. Know that this period in time is a once in a lifetime opportunity. We are seeing stocks getting beaten up really, really bad. Smashed! Dislocations may continue for a while longer, but it will end. I'm investing for that day.
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