Somebody did say …
… that Equity was not for the faint-hearted.
Oh, how true!
Everyday, my heart stands tested!
However, because of a small entry quantum strategy, I am able to stay in the game.
If I am able to stay in the game for multiple cycles, I will prosper.
Firstly, the strategy by default renders me liquid, such are its tenets.
Then, a good hard look at fundamentals is always called for.
To close, it is important is to enter with technicals to support you.
Now let’s say I make a mistake.
What is a mistake?
Ya, good question – in the markets, what is a mistake?
In the markets, when the price goes against you, you have made a mistake.
So let’s say that I’ve made a mistake.
Is the mistake big?
Because of my small entry quantum.
What does it mean for my next entry?
Added margin of safety.
Is that good?
Because fundamentals are intact.
What’s going to eventually happen?
Stock’s going to bottom out.
I’ll have a decent amount of entries to my name.
My buying average will be reasonably low.
The margin of safety my buying average allows me will let me sit on the stock forever, If I wish to.
Down the road, one day, I might be sitting on a big fat multiple.
Please do the math.
Happy and lucrative investing!