First up, is this even the right question?
Should the proper question not be person-centric?
Is there peace of mind in you? Or in me? Or in whoever’s asking?
Let’s just cast aside what the proper question should be for a bit.
We are in the markets, and, if not at first, then ultimately, we do crave for peace of mind.
We’ll probably be in the markets for life.
Where does that leave us?
To answer this question in our favour, our mental, physical and monetary condition needs to be peace-of-mind-appropriate while approaching the markets.
Only surplus goes in.
What goes in, does so in small, digestible quanta, an action that does not disturb one’s equilibrium.
Also, we are not perturbed about any down movement because of our small entry quantum strategy.
We have rendered ourselves peace-of-mind-appropriate.
We have also rendered ourselves open to the effects of big moves.
Big move down?
No worries. Buy some more. Small entry quantum strategy ensures ample liquidity, whilst commitment till date has been small.
Big move up?
No euphoria please. Enjoy your peace of mind and sit tight.
For all you know, it becomes an even bigger move.
You actually end up wishing that the underlying cools down, so you can buy some more.