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Do I place an order for some silver, or wait for the impending drop?
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<p>[QUOTE="Rono, post: 2925555, member: 6492"]Howdy,</p><p><br /></p><p>I've been in an acquire mode for decades now and can't image stopping. It seems to happen that the POS (POG) drops around year end because it's always a great time to buy my annual silver rounds. </p><p><br /></p><p>That said, conventional wisdom holds that with long term investing, one should Dollar Cost Average. By this, they mean you making a purchase on a regular periodic basis, each time spending the same amount (e.g. $1000 every month). By investing this way, you average out the cost at which you're acquiring the asset which - over the long run - results in the lowest cost. </p><p><br /></p><p>Note that in the short run, should you be so inclined, my favorite method is to Momentum invest. This method starts with you identifying some sector/asset class that is starting to diverge from the rest of the market. You make a small purchase and watch to see what it does. If it stays flat or drops, you sit tight. If it drops too much you bail. However, if it goes up, you add a little more. If it goes up further, you continue to add. Let's say you plan to invest $10K in the play. You start with $2500, add $2500 and then the remaining $5K. You add IFF it goes up in value. You're scaling in to your play. And the opposite is true for exiting. You set a mental stop loss of 10-20% depending upon the volatility of the play. It drops that and you start selling. If it continues to drop, you continue to sell. </p><p><br /></p><p>and so it goes,</p><p><br /></p><p>peace,</p><p><br /></p><p>rono[/QUOTE]</p><p><br /></p>
[QUOTE="Rono, post: 2925555, member: 6492"]Howdy, I've been in an acquire mode for decades now and can't image stopping. It seems to happen that the POS (POG) drops around year end because it's always a great time to buy my annual silver rounds. That said, conventional wisdom holds that with long term investing, one should Dollar Cost Average. By this, they mean you making a purchase on a regular periodic basis, each time spending the same amount (e.g. $1000 every month). By investing this way, you average out the cost at which you're acquiring the asset which - over the long run - results in the lowest cost. Note that in the short run, should you be so inclined, my favorite method is to Momentum invest. This method starts with you identifying some sector/asset class that is starting to diverge from the rest of the market. You make a small purchase and watch to see what it does. If it stays flat or drops, you sit tight. If it drops too much you bail. However, if it goes up, you add a little more. If it goes up further, you continue to add. Let's say you plan to invest $10K in the play. You start with $2500, add $2500 and then the remaining $5K. You add IFF it goes up in value. You're scaling in to your play. And the opposite is true for exiting. You set a mental stop loss of 10-20% depending upon the volatility of the play. It drops that and you start selling. If it continues to drop, you continue to sell. and so it goes, peace, rono[/QUOTE]
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