On waiting for the last dollar
Two days ago someone wrote about TWLO, that now that it had dropped from $70 to $30, he would lower his buy point to $27, because that’s what someone said would be the wise thing to do. In fact, almost everyone has been saying to wait on taking a position.
I wrote as follows: The problem with lowering your entry point to $27 is that you might not get it. When the price has dropped from $70 to $30, holding out for a few more dollars seems a little greedy. If it goes back to $70, you won’t care if you paid $27 or $30, but you’ll kick yourself if you missed getting in. Just my way of thinking about it.
As of my current writing, in two days TWLO is up about 6% from that $30 bottom. That writer may never get his $27.
Here’s a quote from the Knowledgebase:
Never miss getting into a stock because you are waiting to buy it a few cents cheaper. The decision is whether you want to invest in it or not. Once you decide, take a starter position, at least. Don’t wait around for a slightly better price. When it’s at $50, I can guarantee that you won’t remember or care whether you paid $10.05 or $10.30, but you’ll be kicking yourself if you didn’t get in.
I’m not promising that TWLO will never get to $27. I don’t know what the future holds. The point I’m making is a different one.
For Knowledgebase for this board,
please go to Post #17774, 17775 and 17776.
We had to post it in three parts this time.
A link to the Knowledgebase is also at the top of the Announcements column
on the right side of every page on this board