When contributing to investments, short term fluctuations can hurt my contributions by a few percent or more. By short term, I mean on the scale of days to several weeks.
I have found that a proper use of limit orders allows me to avoid some short term highs, but when I place the order two far below current trading price sometimes I miss opportunities.
For example, I want to purchase security AAA which today is at 10.0 and over the past week has traded 9.9 +- 0.5. So I set my limit order around 9.7 expecting a down swing. Unfortunately, over the next month the prices rise to 10.8 +- 0.5 and so I miss my contribution and have a higher cost now.
Is there a skillful way of using options or futures to smooth my contributions? For example, if I could buy an option to secure the current price while placing a limit order to capture the possible fluctuation.