how do I prepare for dips without timing the market? I often have no more capital for investing during dips, like with the iran situation from a month or two ago.
I understand buying in tranches can help ensure I have money left - Issue is, with some stocks that are undervalued heavily sometimes the strategy I use is to initiate full position immediately (when there is a strong thesis and a favorable DCF). The thought process I have when buying a stock i think is undervalued is 1. Initiate full position rn and legit just leave it, but then if stock dips more, i lose out the buying opportunity bc im outta money for this. 2. I buy in tranches, so I buy say 50% of the full position, then add on as prices change, but then if its a fundamentally good stock, i dont think I should try to guess if the price is gonna go down or up, thus I feel like its not really worth it to buy in tranches if the stock is already underpriced according to my thesis, and that if i only buy 50%, it feels like i'm not really trusting myself for the investment/not really high conviction. Sorry the way im explaining this might be a bit misleading and i do apologise for it.
Is there a rule that you might follow that helps ensure that you have money to buy in on dips? Is there a % of the total portfolio that you keep in cash? I tend to feel like I have no more investment capital during the dips, and i did think of for eg selling off stocks that are doing well and didn't dip but then it feels like im selling off a fundamentally good stock just to chase a dip.
thank you!