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Sean HymanSean Hyman
Post count: 2791

Start with one tranche. And then you can either do 2 tranches on the last tranche or 3 tranches all at least 10% apart.

The risk to the former is that the stock can go lower, but you’re still better off than all of us at the regular tranches.

The risk of the latter is that you may not get filled on your final tranche.

Either is fine. Why? Because we started investing at value levels and we lowered our breakevens even further by averaging down.

No one knows where bottom will be at on any stock ahead of time. So one just has to pick one way they’re comfortable with and stick with it. There will be individual instances where one would have been more advantageous than the other and vice versa.

But what’s the real goal? To buy low valuations and use a further drop to get an even better/lower breakeven.

If you got started lower than us, then your return is already likely going to either be higher, or you get profitable sooner. Either way, you’re better off than most of us, in those instances. So I’d not overthink it.