I am planning to invest a little portion of my salary say 1000£ monthly on US & UK stocks and planning to hold on for long term. I am aware that investing in stocks might be risky compared to bonds and funds, and I am already investing some portion on bonds and funds. I have shortlisted some companies A, B, C, D & E of different sectors to hold on for long term investments of more than 10 years. Since I am considering to invest only via Stock ISA wrapper in UK, I will be purchasing the stocks via Stockbroker.
I would like to know the pros and cons of investing via each of the below scenarios:
Invest all the allocated share's investment money of that particular month on any of the share which has hit its rock bottom on that particular month and buying the rest of the other companies in next month.
Buy all the companies A,B,C,D,E I have shortlisted every month gradually. But some company like A might be worth 5$ where as E might be worth 500$ for your info.