A tracking position means tracking the company. So if one is confident that he has tracked the business to the point of buying more, he can start building a position.
It can happen that, we might have got excited knowing about a business and bought some shares out of excitement, and after a few days the excitement may disappear, and we by ourselves may feel that we have made a mistake. So, it does not do harm to wait for a couple of weeks.
If there is no such thing, we can wait for the immediate 1 or 2 quarters’ results to come, and go forward, we can also check what others in the stock are doing, how price w.r.t results is behaving, and price w.r.t business is behaving, and then act. Of course, we can buy irrespective of what others are doing, but this means that, we have done some work, and we have an independent view, even an opposing view to others, seeing value when others are not, so we are buying even if others are selling.
Also, if it is considered a long-term holding, building a position need not be quick, we can go slow, we can buy more with time, even buy at a higher price, and participate in a long journey.
Some thoughts, and it can be done in many other ways too.
Subscribe To Our Free Newsletter |