13 Mar 2021
Currently owns NIO, QQQ & NNDM and this 3 has been dipping quite a lot. Was thinking if I should take this opportunity to buy the dips?
That depends on your style. I do not have confidence to continue purchasing things that I am unsure about their future.
I only invest in fundamentally solid companies that are well established and market leaders with wide economic moat. That gives me the confidence that short term sell downs give me the opportunity to add.
However, if the fundamentals of the companies are weak, high debt, no consistent revenue, income and cash flow growth, many competitors, then I would be worried. Doesn’t mean I wouldn’t trade them.
I’ve traded a lot of TSLA, ARK ETFs and other more speculative positions that their financial statements doesn’t look strong. But I would set a clear take profit and stop loss target. Ofc I can’t predict the future and if these companies do well over the long run, someone who held on all the way would probably do better than me. But that’s my style, I would hold strong companies I believe in and trade in wherever there is hype or momentum, and get out before I’m hurt
06 Mar 2021
Founder at thefrugalstudent.com
As Chris has mentioned, price dips are only a good opportunity if the companies you're inv...
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