Exactly, always have a cash reserve to take advantage of overshoot dips. No need to keep that buy as part of the mainstream investment plan just simply profit from irrational selling. If a long-term investor treat this buy as separate and short to reduce risk on that parcel. The key though is flexibility - if buy on an irrational dip can still keep long term if there is an obvious change in sentiment. That change can happen intra-day never mind overnight. If choose to keep then sell something else to maintain the cash reserve.
MRM Price at posting:
24.5¢ Sentiment: Hold Disclosure: Held
