Volatility is back in the markets - especially in the technology sector.
One of the best investment concepts to protect yourself from the mercurial market is to always keep a margin of safety.
For example, NVIDA was over $218 only a month ago and is now in the low $190's. That is a 13% decrease in the value of the stock. So, if you bought it at the high of 218, you had no margin of safety.
Now, NVIDA has gone up from $88 in the last year. So, if you owned it at 88 and it went down from 218 to 190, you are still way ahead of the game. No big deal.
The point is to always retain your margin of safety when investing in individual stocks. Don't get wrapped up in the hype and buy at high points. Like any purchase, keep your costs low and, by all means, exercise patience.
We live in a society that technology encourages immediate gratification, but that can work against you in the market. Keep your cool and retain that margin of safety. Just because others are "going off the deep end" doesn't mean you should follow!
