A good strategy would be to invest a little with each period of time. So you could, for example, invest £250 every week considering you had £1000. And you wouldn’t necessarily have to follow that logic if a bigger fall happened in the middle of the period, where you could invest more to take advantage.
Right now, I’m out of money to invest here, but I think I’d do it that way.
Yes thats kind of the strategy i’m using at the moment. Im getting an income of around £300 a week from my second job. Which is all going into shares.
Im planning on aiming to around 10 shares in 4 tech companies. As an initial investment. Next week ill have my 10 in nvidia. Then onto the next. Mainly a long term investment over a few years is the aim
I think you’d be assuming really high growth at around $170. I don’t think that long term NVDA will be able to grow at a level that would justify a current stock price of $170. A P/E of 32 and below is fair in my opinion.
Im watching for the dip for Nvidia, I’m new to investing with shares and trying to learn what makes a share drop in price and news like this is giving me good indication that i know what to look for now, so by reading some of your comments im guessing its still not totaly worth to invest?
What is often (i.e. not always) built into a share price is an expectation - that expectation might be to do with profit or revenue or some other relevant metric dependent on where the company is in the business cycle.
If a company makes a profit that is in line with what is expected its value does not usually go up. One of the reasons that Nvidia’s share price dropped yesterday is that the company did not meet its revenue expectations. This might not be the only reason. This could have triggered people to look more closely at its prospects and revise their beliefs about the company.
Going on to the internet and asking strangers for advice about what a good price for a share is or is not is really really not a good idea. You have no idea if you are talking to a gambler or even someone who is trying to puff up or dump a share. You might be talking to someone who knows very little about the company and might simply be basing his “good price” on a previous price the company held. The latter might seem sensible to a lay person - but it isn’t.
A previous price the company shares held might be something to do with what stage of growth the company was at that point and what the market expectations were at that point (and there will be a random element to it anyway). You need to think about future prospects to work out whether you want to purchase a share or not. In fact, if you are an investor rather than a share trader, and you want to hold for a long time, you might not even be interested in the present price.
I strongly recommend you hit the start button on Freetrade Invest Hub and read as much as you can before you continue.