A lot of things in market are not absolute, they change from person to person, and market itself is not absolute, it if fluid and changes. So we all have to make our choices depending on our current and future situation.
Someone can afford to miss an opportunity because he can find other opportunities which will give equal return if not more return, this choice of missing one and selecting other comes from experience or with conviction, Dr. Hitesh comes to mind, he has both, he is very experienced and reached a level of expertise.
For someone like me, who understands a business but unsure if or when the valuations will come down, building a position so as to not miss the opportunity and also in a relative safe zone due to not allocating completely at high valuations, but only say invested half. If the stock falls, I would buy, if it does not, I will again slowly increase the position, and all of this takes time naturally, and that is a good thing here, as I get a chance to know more about the business, follow the business, so even if the price falls or moves up, I am more knowledgeable than when I started invested in the stock, I will be adding. I also sell when the price falls more than I can take, breaking support levels etc, even if the profit % is a few points, the absolute profit is good enough for me, so I sell and start building my position again, the cycle starts again.
I don’t know what to call this, but even with long term holdings, I follow this. I am not equipped with the skills and talents of someone line Ayushmit, who can stay invested for years despite a fall because I don’t have deep understanding of any business.
Another point I guess that don’t get discussed is the investing time period, I know about professional managers who in 60s or even 70s manage money, bury themselves in their work, but can we do that cognitively, financially and joyfully? I cannot, like a boxer who can have a maximum of 20 or 25 years. So I have to get into the waters, while I still can, and if I am not greedy and focus on learning, accept a better return than a FD, gain experience and take better decisions as time progresses, my return will also increase, at least I will make less mistakes. I cannot lose the chance of experience citing valuations, overheated markets, or any other reason. I can read, learn but I think the lessons market teaches in real time are the best. To each his own of course.
So I guess, it is the way we think, the affordability of money and time, the age we are in life, the situation we are in, the kind of money we want to make, all of these make us choose or reject something.
If I know where I should go, which bus I should board, I will try to board that bus, no matter it is full or empty. And fortunately the current market gives more than necessary options to choose from.
Just presenting my thoughts, hope they are coherent, and I know that all of what I have mentioned is not applicable to you.
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