Where were you some days back?
Buying was a breeze, for quite a while.
Lately, as in, since Tuesday, it’s not so much a breeze.
Pharmaceuticals are already up to their pre-crisis prices, and IT needs to recover another 10 – 15% and it’s there.
If this trend continues for another week, we could be talking about an interim recovery.
Prices haven’t recovered fully, you would argue, right?
Fine. That’s a valid perspective, in the event that you are a long-term investor.
What’s your compromise?
You won’t be getting full margin of safety at these prices.
Also, on these up days, there’s so much upwards pressure that the bid-ask spread squeezes you generously to the upside.
A few days back both these avenues were reversed.
Still want to buy?
Wait for a big down day.
Margin of safety will be slightly better, and downward pressure will let you buy on limit, lucratively set to harness the downward momentum.
How do we know that a big down day is coming, in the first place?
What if there aren’t any more big down days in the near future?
Lock your spare funds away safely, and wait patiently for the next shock.
Waves operate in shocks.
This is the age of shocks.
Buy in the aftermath of a shock.
What if one isn’t able to buy anymore?
Lock in whatever you’ve bought, and divert your attention to other activities.
Do something that takes away your attention from your locked in equity.
That way you will be able to sit without spoiling your compounding that will happen while you sit.
Just forget about FOMO. Live in the now. Have your job cut out. Wait for the right conditions to appear. Then act.