facebookI've entered at a good level of price to me (I'm no expert) but it seems like the price just keeps falling and I feel I have entered too early. Any advice? - Seedly

Anonymous

14 Jun 2020

โˆ™

Stocks

I've entered at a good level of price to me (I'm no expert) but it seems like the price just keeps falling and I feel I have entered too early. Any advice?

I have a war chest, done my research and have a watchlist. Not sure if I have entered too early. Should I hold or sell?

Discussion (6)

What are your thoughts?

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I had the same worry too. But truth be told, timing the market is something even experts can't do well (i.e buy low, sell high is more of a gamble than an investment strategy). I think the best is to DCA (dollar cost average) and let the investments work for you over a long time period (10 years or more, ideally the longer the better). The stock market in general always go up historically.

Elijah Lee

12 Mar 2020

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

Don't worry. No one knows when the bottom is. If the fundamentals of the company have not changed, and you have reason to believe they will survive whatever storm is coming, then lower prices simply means a better value to accumulate them at. Hence, when entering a stock, you should prepare to add further in future at better prices, at least once more, if not, twice or more.

If you've used up your warchest, that's another matter entirely. So ration your warchest carefully and make sure you still have funds at any point during the next few months. You might never fully deploy your warchest even if you keep going in, but that's just how things are.

I don't think anyone can definately pinpoint when a stock will be bottom or be at top.

and everyon...

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