facebookHow would you go about building your warchest after spending all in a dip? - Seedly

Anonymous

18 Jun 2021

Robo-Advisors

How would you go about building your warchest after spending all in a dip?

Do you accumulate until it reaches the original amount? Or do you continue buying dip when new funds come in?

Discussion (6)

What are your thoughts?

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You need to "budget" your buying during dips. Because there will always be more dips but dont know when. If you "show hand" your warchest , i think is very difficult to accumulate back, it takes years.

How to build back?
Other then with your salary from ur job, invest in some dividend paying stock/fund/real estate, this take time, will help to speed thing up. Basically, the more income stream, the faster u build back, income diversification.

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thefrugalstudent

18 Jun 2021

Founder at thefrugalstudent.com

Hi Anon,

I think it depends on how much you're looking to add to your portfolio now, and your desired portfolio allocation. IE if tech stocks dip, and you take the opportunity to add them to your portfolio, do you want to keep adding them until they make up almost your entire portfolio? Or is there a threshold you have set for how much % you want to be allocated to tech in total? Buying the dip is great, but you also need to consider portfolio allocation because this in turn relates to the risk you're taking on as an investor and your potential returns.

Hope this helps!

Regards,

thefrugalstudent

Lin Yun Heng

17 Jun 2021

Senior Analyst at Delphi

Stablecoins farming. Easily maintain 20% APY on your cash position. Then when a dip come you can do ...

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