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Online Share Trading

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Timing ETF transactions

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Zebra777
Occasional Contributor

So I have put some money in my TFSA.  How do I time buying ETFs as they are basket shares?

 

I have some some normal shares and my my naive strategy is to buy blue chips when they dip and hold for the long run.  For example I am buying MTN as I believe that their fundamentals are good but they have been wacked by fines so sentiment must be bad but they are still paying a 5% divident.  I see Tinger brands has also taken a hard nock.  Then I took a gamble and put a few grand on Steinhoff and Lonmin.  Is this strategy completely foolish?     

5 REPLIES 5
moneycat
Contributor

Also bought some MTN shares yesterday at R86.80.  Hope it is not 'falling knives'.  Price is above R87 today.

partridge1
Regular Contributor
courageous person you
Zebra777
Occasional Contributor
Mkhululi
New Contributor
i failed with this strategy, had a few. Choppies, Nampak, Aveng.... i learnet that if a share falls by 80%, it can easily fall another 19% :(

Diversification is key, and the maths of having a balaned beta portfolio can be a looooooooot of work, so sometimes it's just better to go for etfs
thatoriaan
New Contributor

You shouldn't speculate but invest.... You can never know where your luck lies and Steinhoff could bounce back.... So just let them be.