Thread by @JonahLupton

I think we need to have a little chat about entry points into positions and why waiting for the “perfect” price is usually a pointless and self-defeating strategy.

At least 25-30 times per day I get a direct tweet or DM from someone that goes something like this “I really like $CRWD or $TSLA or $TDOC but I’m not sure if I should buy today or wait and see if it pulls back another 2-3%?”

Of course we all want to buy our stocks at the lowest price possible but none of us are smart enough to know when that will be.

Let me share the same advice with you all that I share in my DM’s.

I usually ask them what type of investor they are:

“Are you trading your stocks or planning to buy and hold?” 99% of the time they say buy & hold

“Assuming you still like this stock for the next 3 years, where do you think the price can go”

Usually they say “2-3x higher”

So I reply “perfect, you just made my point, if you think this $100 stock is going to $200 or $300 over the next few years then why do you care if you pay $100 today or maybe get to buy this stock for $97 next week?”

“What happens if you never get the pullback you’re hoping for and end up chasing the stock and paying $110. How will that make you feel.”

They usually reply with “I’d feel like an idiot”.

Stop trying to time the markets. If you’re a long term investor and adding money to your accounts on a regular basis then it’s foolish trying to buy at the perfect price. I also guarantee if you got that 5% pullback you’d be too scared to pull the trigger so why stress about it.

Find stocks you want to own for the next 2-3 years and stop worrying about buying at the cheapest price possible.

More often than not you’ll end up chasing these stocks higher or even worse you’ll be too stubborn to chase and will end up missing out on a great company.