Newbie's Blog: Si Vis Pacem, Para Bellum

It is a time of peace and joy as Christmas approaches. Markets are green and stocks (most) are rallying. For investors, it is the time to reap what they have sown as long as they have chosen the correct companies.

However, it is during this period that a phrase "Si Vis Pacem, Para Bellum" or "If you want peace, prepare for war" comes to mind. Now, such a phrase is usually not associated with trading or investing as investing is meant to be something which you invest in and forget. And to me, this is true. It is when stocks are green and bullish, one should beware, especially since there is a lot of temptation to buy stocks. But stocks (or most) would already be at their peak. Stocks like $Tesla Motors(TSLA)$  are going higher, reach $260. Very tempting. However, to prepare for "war", one should never do so during war, otherwise it would be too late. Similarly, it is in my opinion that one should start to accumulate prior and prepare.

Take for example, $NIO Inc.(NIO)$  , one who bought the stock at its trough at around $7 would be enjoying its fruits now (nope I am not one of them). However, as a discipline, one should have an active accumulation plan to beef up one's portfolio. One thing I'm still trying to learn in terms of preparation is when to buy stocks at its lowest. For Nio, compared to its peak, it has certainly fallen a lot. But past prices, while vaguely indicative, may not reflect future performances. It is a bit like Tesla may never reach its peak of $400 (before split). However, for EVs, I feel that some companies are certainly at the forefront of the industry, be it in terms of cost (Byd), battery swapping for "faster recharge" (currently Nio) or any other forms of innovation. This month, I added lesser to my portfolio as most of the stocks are already green (at its peak).

That being said, my strategy is to slowly accumulate when prices are red to build my EV/transport themed portfolio for the long run. While it is yet to be seen whether the prices will last past the rally, I feel that it is irrelevant in the long haul. Similar to how index functions, I feel the EV market will continue to expand for and in the future.

@Daily_Discussion  @TigerStars