Key points to consider

1. Whether it's truly a good stock

2. Where to place the strike zone

3. How much position size is appropriate for each purchase when building a position in batches? When you don't have unlimited funds, will it impact the overall account's risk control?

4. A significant drop in a stock's price must have its reasons, often involving various scary stories. This brings us back to point 1: how to determine if it was unfairly sold off, or if there's a fundamental deterioration or the industry's moat has been breached?

5. When executing steps 1-2-3-4 and finding yourself heavily invested, only to realize it was a misjudgment, can you make an accurate decision in time, calmly cut losses, and move on to the next round of judgment?

I think each of the above points has a certain degree of difficulty, even considerable difficulty. Therefore, I believe investing is not as simple as saying "buy more as it falls on the left side" or "go all-in chasing a breakout on the right side." The essence is still betting on your own valuation judgment—"Where do I think this company is headed?"

LongPort - 价值&投资
价值&投资

Never miss a good stock

just because you want to bottom-fish.

Many people just say it will go even lower, I'll wait a bit more.

I've never caught the absolute bottom.

I just start building my position in batches once it reaches what I consider the 'strike zone'.

Building a position in batches is also the best way to cultivate patience.🤔

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