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Old 13.01.2021, 01:56
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amogles amogles is offline
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Re: How much you are able to invest in stock market?

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I prefer keeping a certain cash buffer - which can serve both as the EF as well as dry powder if a sudden drop(portunity) hits.
Don't mind the slight opportunity cost for that potential benefit.
While I agree with the concept of always having a rainy day fund (for those who can afford it) and I have many times been happy that I had a fund to steal out of when in need, I think one needs to be careful about making the main purpose of that fund a powder store for the next market drop, as trying to time the market is always a questionable strategy.

I missed out on the best bit of the March drop as I was so convinced that the market was going to drop further that I didn't buy when the recovery began and thus missed out on the best few weeks of recovery until finally I realized it wasn't a random blip. I can't complain as I still made good money out of it overall, but I could have made much more.
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