#DXYZ's big surge has prompted many cautious friends to ask, can we enter at 39-40 now? This is the FOMO mentality of most retail investors, easily chasing high and getting stuck. What is the most effective way to enter? I'm not saying it's safe, because investing always involves risks.
Assuming you don't have any shares on hand, but you are hopeful yet afraid of getting hurt, you can proceed as follows:
Using 100 shares as an example, you can start by buying 10-20 shares. If there is a 10%-20% pullback, you buy another 10-20 shares, and vice versa if it continues to rise, buy following this approach.
Of course, you can also set a stop-loss point, and sell if it drops by 10% after buying. Depending on each person's investment style.
If you already have stocks on hand and they have risen by 40% to 50%, but not much, and you want to earn more, then you can chase the high prices. If it keeps rising, you will earn more. If it retraces, as long as the price does not fall below the average of your total holdings, you do not need to worry. If it falls below the average, you can sell the stocks bought at high prices first.
#InvestingInUSStocksCanLeadToWealth