There
are many strategies to invest in stocks out there, but the average up and down
in buying stocks would be the best one.
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We don't have a crystal ball to see a stock movement in a short period of time.
We would be able to guess that a stock would be up in a longer period of time
such as 6 months or a year, sometimes it takes longer.
If we bought a stock with all of our money, it could swing up or down during
the next couple of days, this may make us upset due to bigger loss. Of course,
we could be a little bit happier if it gained.
If we decided to buy a stock, we should spread our money in several buys
spanning a couple of days as stocks fluctuated during those days.
-> After the first buy, stock could be up/down a little, thus we didn't feel
as bad if it's down.
-> The next buy [if down] would lower average cost in this stock, i.e. we
feel good for a good decision made.
-> The next buy [if up] would raise average cost in this stock, but we only
feel "a little bit less money made."
You should make sure that you wouldn't be upset in a wrong decision as we can't
tell. The averaging cost would help us in good health.
* There was something called psychological effect in stock investment.
Currently it's very negative in Europe due to recession plus uncertainty about
Brexit, thus they tend to dump stocks at ridiculous prices. When these factors
removed, stocks would be in steep upward trend.
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