Here’s some advice. Since I’ve mentioned RMG in this thread a few times I will take you through what I do in my due diligence phase.
1. Find a company/industry/sector that I like.
2. Learn about the components of that sector or industry. In other words—what are the driving factors behind the successful companies and products in the industry.
3. Find the best in breed in that industry or sector.
4. I have an account on Stocktwits (free) and sometimes I will scour their message boards there. A lot of garbage on that app, but there is also some good info/perspective.
5. Invest.
Here is an example of my investing strategy. Say you have $10,000. Don’t shoot your wad all at once. Take DAL for example. On profit sharing day let’s say you had $10,000 to invest in DAL. If it were me and I wanted to invest in an airline I would have invested $5,000 of it on that day. Owning a whopping 83 shares for $5,000.
Then literally one week after I started that position the bottom fell out. 2-24-20 that was $45.03 at its low. Not a good look in my portfolio. But you realize the environment. Panic selling. The market. Pandemic. Then you get excited because there is starting to be some major value here but you need to wait until this thing finds support and isn’t in a total free fall. Then on March 30th you see $22 and you know that is a sale price. So you buy. $2500 worth. 113 shares + your original 83 = 196 shares.
Then on May 11th you buy your last $2500 worth at $19. 131 shares. Add this up to your already 196 shares and you have 327 shares of DAL with an average cost of $30.58.
In this example you just went to the depths of hell and back. But your strategy which mirrors Tegridys strategy is to be disciplined, split up investments leaving yourself the opportunity to average up—or average down. If you’re consistent and disciplined you can make even a bad situation like this example work out okay. Buying at the high, buying more on a dip, and buying the last allotment on another dip.
$10,000 invested in DAL. $30.58 average. 327 shares.
As of 12/18/20 at close—DAL is $40.68 and now you can start thinking about your exit strategy! Your $10,000 is $13,302.
So having said that I always start off with investor presentations. Read, educate, decipher, dig, and formulate an opinion. Good luck deltoids. Example:
https://romeopower.com/RomeoPowerInv...vember2020.pdf